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Abstract In this note, we consider a location model with an unobserved endogenous dummy variable without regressors and without instrumental variables. We show that it is possible to estimate the… Click to show full abstract
Abstract In this note, we consider a location model with an unobserved endogenous dummy variable without regressors and without instrumental variables. We show that it is possible to estimate the location parameter under regularity assumptions. One of these assumptions is a symmetry assumption on the error. However, a lower bound to the asymptotic variance is derived that shows that estimators of the model will inherently possess an extremely large asymptotic variance under sensible assumptions on the error term.
Keywords:
model endogenous;
dummy variable;
endogenous dummy;
location model
Journal Title: Economics Letters
Year Published: 2020
Link to full text (if available)
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Journal Title: Economics Letters
Year Published: 2020
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!