Sharp Bounds in the Binary Roy Model
Marc Henry, Ismaël Mourifié
Abstract
Open-access reader
Marc Henry, Ismaël Mourifié
Abstract
Open-access reader
We derive the empirical content of an instrumental variables model of sectorial choice with binary outcomes. Assumptions on selection include the simple, extended and generalized Roy models. The derived bounds are nonparametric intersection bounds and are simple enough to lend themselves to existing inference methods. Identification implications of exclusion restrictions are also derived.
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We derive the empirical content of an instrumental variables model of sectorial choice with binary outcomes. Assumptions on selection include the simple, extended and generalized Roy models. The derived bounds are nonparametric intersection bounds and are simple enough to lend themselves to existing inference methods. Identification implications of exclusion restrictions are also derived.
Key concepts: Simple (philosophy), Binary number, Inference, Nonparametric statistics, Instrumental variable, Intersection (aeronautics), Selection (genetic algorithm), Identification (biology)