Article
Tightening bounds in triangular systems
Economic Letters
(2014)
Abstract
This note discusses partial identi cation in a nonparametric triangular system with discrete endogenous regressors and nonseparable errors. Recently, [Jun, Pinkse and Xu (2011, JPX). Tighter Bounds in Triangular Systems. Journal of Econometrics 161(2), 122-128] provides bounds on the structural function evaluated at particular values using
exclusion, exogeneity and rank conditions. We propose a simple idea that often allows to improve the JPX bounds without invoking a new set of assumptions. Moreover, we show how our idea can be used to tighten existing bounds on the structural function in more general triangular systems.
Keywords
- Nonparametric triangular systems,
- Partial identification,
- Instrumental variables,
- Rank conditions
Disciplines
Publication Date
December, 2014
DOI
10.1016/j.econlet.2014.10.019
Publisher Statement
This is a manuscript of an article published as Kedagni, Desire, and Ismael Mourifié. "Tightening bounds in triangular systems." Economics Letters 125, no. 3 (2014): 455-458. doi: 10.1016/j.econlet.2014.10.019. Copyright © 2014 Elsevier B.V.
Citation Information
Desire Kedagni and Ismael Mourifie. "Tightening bounds in triangular systems" Economic Letters Vol. 125 Iss. 3 (2014) p. 455 - 458 Available at: http://works.bepress.com/desire-kedagni/4/