Control Functions and Simultaneous Equations Methods.
The control function approach is a convenient method of estimation in simultaneous equation systems. This requires that the system can be expressed in triangular form with variables satisfying a conditional mean independence restriction. Linear simultaneous models with additive errors can always be...
| Publicado en: | American Economic Review Vol. 103; no. 3; pp. 563 - 570 |
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| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
American Economic Association
May2013
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=87662380&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 87662380 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: May2013 vid: 103 iid: 3 pid: 22 pub: American Economic Association artinfo: ui: 87662380 10.1257/aer.103.3.563 ppf: 563 ppct: 7 formats: tig: atl: Control Functions and Simultaneous Equations Methods. aug: au: Blundell, Richard Kristensen, Dennis Matzkin, Rosa L affil: a1 a2 a3 su: Economic models Simultaneous equations Conditional expectations Statistical errors Estimation theory Nonlinear estimation Endogeneity (Econometrics) Agency theory Exogeneity (Econometrics) sug: subj: Economic models Simultaneous equations Conditional expectations Statistical errors Estimation theory Nonlinear estimation Endogeneity (Econometrics) Agency theory Exogeneity (Econometrics) ab: The control function approach is a convenient method of estimation in simultaneous equation systems. This requires that the system can be expressed in triangular form with variables satisfying a conditional mean independence restriction. Linear simultaneous models with additive errors can always be expressed in this form. However, in nonlinear nonadditive simultaneous systems, conditional independence requires a strong additional restriction known as control function separability. We argue that nonadditive models are a key characteristic of simultaneous models of economic behavior with unobserved heterogeneity. We review alternative 'system' approaches and document the biases that occur when the control function approach is used inappropriately. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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