Econometrica: Sep 2008, Volume 76, Issue 5

Identification in Nonparametric Simultaneous Equations Models

https://doi.org/10.3982/ECTA5940
p. 945-978

Rosa L. Matzkin

This paper provides conditions for identification of functionals in nonparametric simultaneous equations models with nonadditive unobservable random terms. The conditions are derived from a characterization of observational equivalence between models. We show that, in the models considered, observational equivalence can be characterized by a restriction on the rank of a matrix. The use of the new results is exemplified by deriving previously known results about identification in parametric and nonparametric models as well as new results. A stylized method for analyzing identification, which is useful in some situations, is also presented.

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