Author : Shakeeb Khan
Publisher :
ISBN 13 :
Total Pages : 48 pages
Book Rating : 4.:/5 (123 download)
Book Synopsis Informational Content of Factor Structures in Simultaneous Binary Response Models by : Shakeeb Khan
Download or read book Informational Content of Factor Structures in Simultaneous Binary Response Models written by Shakeeb Khan and published by . This book was released on 2021 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the informational content of factor structures in discrete triangular systems. Factor structures have been employed in a variety of settings in cross sectional and panel data models, and in this paper we formally quantify their identifying power in a bivariate system often employed in the treatment effects literature. Our main findings are that imposing a factor structure yields point identification of parameters of interest, such as the coefficient associated with the endogenous regressor in the outcome equation, under weaker assumptions than usually required in these models. In particular, we show that a non-standard exclusion restriction that requires an explanatory variable in the outcome equation to be excluded from the treatment equation is no longer necessary for identification, even in cases where all of the regressors from the outcome equation are discrete. We also establish identification of the coefficient of the endogenous regressor in models with more general factor structures, in situations where one has access to at least two continuous measurements of the common factor.