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The method of indirect least squares (ILS) using a proxy for a discrete instrument is shown to identify a weighted average of local treatment effects. The weights are nonnegative if and only if the proxy is intensity preserving for the instrument. A similar result holds for instrumental...
Persistent link: https://www.econbiz.de/10008522480
This paper provides estimators of discrete choice models, including binary, ordered, and multinomial response (choice) models. The estimators closely resemble ordinary and two stage least squares. The distribution of the model's latent variable error is unknown and may be related to the...
Persistent link: https://www.econbiz.de/10004968796
This paper considers identification and estimation of the marginal effect of a mismeasured binary regressor in a nonparametric regression, or the conditional average effect of a binary treatment or policy on some outcome where treatment may be misclassified. Misclassification probabilities and...
Persistent link: https://www.econbiz.de/10004968810
Persistent link: https://www.econbiz.de/10005102624
This paper provides a few variants of a simple estimator for binary choice models with endogenous or mismeasured regressors, or with heteroskedastic errors. Unlike control function methods, which are generally only valid when endogenous regressors are continuous, the estimators proposed here can...
Persistent link: https://www.econbiz.de/10005102653
nonseparable case. We provide new nonparametric asymptotic theory, treating both the traditional case of observed exogenous …
Persistent link: https://www.econbiz.de/10005102694
This paper presents a new method to correct for measurement error in wage data and applies this method to address an … a cut in nominal wages is substantially overstated in data that is not corrected for measurement error. …
Persistent link: https://www.econbiz.de/10005102717
This paper considers measurement error from a new perspective. In surveys, response errors are often caused by the fact … models. We establish that measurement errors due to poor recall are generally likely to exhibit nonstandard behavior, in … that conventional wisdom about measurement errors may be misleading in many economic applications. For instance, under …
Persistent link: https://www.econbiz.de/10008506226
either by observing a variable V that is roughly analogous to an instrument for ordinary measurement error, or by imposing …
Persistent link: https://www.econbiz.de/10004995335
This paper proposes a new method of obtaining identification in mismeasured regressor models, triangular systems, and simultaneous equation systems. The method may be used in applications where other sources of identification such as instrumental variables or repeated measurements are not...
Persistent link: https://www.econbiz.de/10005074046