AcademicsWorking Papers

Simultaneous equations for discrete outcomes: Coherence and completeness using panel data
Andrew Adrian Pua
2484 20190709 () Views:24152
Modeling jointly determined discrete outcomes via simultaneous equations require the so-called coherency condition to guarantee the existence of a unique reduced form. These conditions effectively convert a model where the endogenous variables are jointly determined into a model that is triangular or recursive. In the spirit of a suggestion by Lewbel (2007), I propose using panel data to decide how the coherency condition will hold without restricting error supports or imposing triangularity for all observations.
JEL-Codes:
Keywords:


Downloads:0