centre for microdata methods and practice

ESRC centre

cemmap is an ESRC research centre

ESRC

Keep in touch

Subscribe to cemmap news

An instrumental variable random coefficients model for binary outcomes

Authors: Andrew Chesher and Adam Rosen
Date: 23 October 2012
Type: cemmap Working Paper, CWP34/12
DOI: 10.1920/wp.cem.2012.3412

Abstract

In this paper we study a random coefficient model for a binary outcome. We allow for the possibility that some or even all of the regressors are arbitrarily correlated with the random coefficients, thus permitting endogeneity. We assume the existence of observed instrumental variables Z that are jointly independent with the random coefficients, although we place no structure on the joint determination of the endogenous variable X and instruments Z, as would be required for a control function approach. The model fits within the spectrum of generalised instrumental variable models studied in Chesher and Rosen (2012a), and we thus apply identification results from that and related studies to the present context, demonstrating their use. Specifically, we characterize the identified set for the distribution of random coefficients in the binary response model with endogeneity via a collection of conditional moment inequalities, and we investigate the structure of these sets by way of numerical illustration.

Download full version
Now published:
Andrew Chesher and Adam Rosen April 2015, An instrumental variable random-coefficients model for binary outcomes, Journal Article, Wiley

Publications feeds

Subscribe to cemmap working papers via RSS

Search cemmap

Search by title, topic or name.

Contact cemmap

Centre for Microdata Methods and Practice

How to find us

Tel: +44 (0)20 7291 4800

E-mail us