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Multiple Discrete Endogenous Variables in Weakly-Separable Triangular Models

Author

Listed:
  • Sung Jae Jun

    (CAPCP and Department of Economics, Pennsylvania State University, 608 Kern Graduate Building, University Park, PA 16802, USA)

  • Joris Pinkse

    (CAPCP and Department of Economics, Pennsylvania State University, 608 Kern Graduate Building, University Park, PA 16802, USA)

  • Haiqing Xu

    (Department of Economics, University of Texas at Austin, 78712 Austin, TX, USA)

  • Neşe Yıldız

    (Department of Economics, University of Rochester, 222 Harkness Hall, Rochester, NY 14627, USA)

Abstract
We consider a model in which an outcome depends on two discrete treatment variables, where one treatment is given before the other. We formulate a three-equation triangular system with weak separability conditions. Without assuming assignment is random, we establish the identification of an average structural function using two-step matching. We also consider decomposing the effect of the first treatment into direct and indirect effects, which are shown to be identified by the proposed methodology. We allow for both of the treatment variables to be non-binary and do not appeal to an identification-at-infinity argument.

Suggested Citation

  • Sung Jae Jun & Joris Pinkse & Haiqing Xu & Neşe Yıldız, 2016. "Multiple Discrete Endogenous Variables in Weakly-Separable Triangular Models," Econometrics, MDPI, vol. 4(1), pages 1-21, February.
    • Handle: RePEc:gam:jecnmx:v:4:y:2016:i:1:p:7-:d:63449
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    References listed on IDEAS

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    4. Songnian Chen & Shakeeb Khan & Xun Tang, 2022. "Endogeneity in Weakly Separable Models without Monotonicity," Papers 2208.05047, arXiv.org.
    5. Feng, Junlong, 2024. "Matching points: Supplementing instruments with covariates in triangular models," Journal of Econometrics, Elsevier, vol. 238(1).
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    7. Shishir Shakya & Nabamita Dutta, 2024. "How Individualism Influences Female Financial Inclusion through Education: Evidence from Historical Prevalence of Infectious Diseases," Working Papers 24-03, Department of Economics, Appalachian State University.
    8. Shishir Shakya & Nabamita Dutta, 2024. "How Individualism Influences Female Financial Inclusion through Education: Evidence from Historical Prevalence of Infectious Diseases," Working Papers 24-07, Department of Economics, Appalachian State University.

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