Testing for Monotonicity in Unobservables under Unconfoundedness

• Main Authors: HODERLEIN, Stefan, SU, Liangjun, WHITE, Halbert, YANG, Thomas Tao
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: Control variables; Conditional exogeneity; Endogenous variables; Monotonicity; Nonparametrics; Nonseparable; Specification test; Unobserved heterogeneity; Econometrics
• Online Access: https://ink.library.smu.edu.sg/soe_research/1785; https://ink.library.smu.edu.sg/context/soe_research/article/2784/viewcontent/03_2016.pdf
• Institution: Singapore Management University

Monotonicity in a scalar unobservable is a common assumption when modeling heterogeneity in structural models. Among other things, it allows one to recover the underlying structural function from certain conditional quantiles of observables. Nevertheless, monotonicity is a strong assumption and in s...