Instrumental Variable Models for Discrete Outcomes
نویسنده
چکیده
Single equation instrumental variable models for discrete outcomes are shown to be set not point identifying for the structural functions that deliver the values of the discrete outcome. Identi ed sets are derived for a general nonparametric model and sharp set identi cation is demonstrated. Point identi cation is typically not achieved by imposing parametric restrictions. The extent of an identi ed set varies with the strength and support of instruments and typically shrinks as the support of a discrete outcome grows. The paper extends the analysis of structural quantile functions with endogenous arguments to cases in which there are discrete outcomes. Keywords: Partial identi cation, Nonparametric methods, Nonadditive models, Discrete distributions, Ordered choice, Endogeneity, Instrumental variables, Structural quantile functions, Incomplete models. JEL Codes: C10, C14, C50, C51.
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