Identification of Instrumental Variable Correlated Random Coefficients Models

A-Tier
Journal: Review of Economics and Statistics
Year: 2016
Volume: 98
Issue: 5
Pages: 1001-1005

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study identification and estimation of the average partial effect in an instrumental variable correlated random coefficients model with continuously distributed endogenous regressors. This model allows treatment effects to be correlated with the level of treatment. The main result shows that the average partial effect is identified by averaging coefficients obtained from a collection of ordinary linear regressions that condition on different realizations of a control function. These control functions can be constructed from binary or discrete instruments, which may affect the endogenous variables heterogeneously. Our results suggest a simple estimator that can be implemented with a companion Stata module.

Technical Details

RePEc Handle
repec:tpr:restat:v:98:y:2016:i:5:p:1001-1005
Journal Field
General
Author Count
2
Added to Database
2026-01-25