Working Paper

Identification with excess heterogeneity

Authors

Andrew Chesher

Published Date

9 December 2005

Type

Working Paper (CWP19/05)

An outcome is determined by a structural function in which the effect of variables of interest is transmitted through a scalar function of those variables – an index. Multiple sources of stochastic variation are permitted to appear asarguments of the structural function, but not as arguments of the index. Conditionsare provided under which there is local identification of ratios of partial derivativesof the index.