Counterfactual Identification and Latent Space Enumeration in Discrete Outcome Models.

This article provides a unified framework for studying the identification of counterfactual parameters in a general class of discrete outcome models, allowing for endogenous regressors and multidimensional latent variables, all without parametric distributional assumptions. Our main theoretical resu...

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Detalles Bibliográficos
Publicado en:Review of Economic Studies Vol. 93; no. 3; pp. 1847 - 1889
Autores principales: Gu, Jiaying, Russell, Thomas M, Stringham, Thomas
Formato: Artículo
Publicado: Oxford University Press / USA May2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: May2026
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      pub: Oxford University Press / USA
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        193663107
        10.1093/restud/rdaf058
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        atl: Counterfactual Identification and Latent Space Enumeration in Discrete Outcome Models.
      aug:
        au:
          Gu, Jiaying
          Russell, Thomas M
          Stringham, Thomas
        affil:
          Department of Economics, University of Toronto, Canada
          Department of Economics, Carleton University, Canada
          StataCorp, USA
      su:
        Latent variables
        Discrete choice models
        Algorithms
        Linear programming
        Nonparametric statistics
        Counterfactuals (Logic)
        Hyperplanes
      sug:
        subj:
          Latent variables
          Discrete choice models
          Algorithms
          Linear programming
          Nonparametric statistics
          Counterfactuals (Logic)
          Hyperplanes
      ab: This article provides a unified framework for studying the identification of counterfactual parameters in a general class of discrete outcome models, allowing for endogenous regressors and multidimensional latent variables, all without parametric distributional assumptions. Our main theoretical result is that, when the covariates are discrete, the infinite-dimensional latent variable distribution can be replaced with a finite-dimensional version that is equivalent from an identification perspective. The finite-dimensional latent variable distribution is constructed in practice by enumerating regions of the latent variable space with a new and efficient cell enumeration algorithm for hyperplane arrangements. We then show that bounds on a certain class of counterfactual parameters can be computed by solving a sequence of linear programming problems, and show how the researcher can introduce additional assumptions as constraints in the linear programmes. Finally, we apply the method to a mobile phone choice example with heterogeneous choice sets, and to an airline entry game example.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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