IDENTIFICATION OF PAIRED NONSEPARABLE MEASUREMENT ERROR MODELS
This paper studies the paired nonseparable measurement error models, where two measurements, X and Y, are produced by mutually independent unobservables, U, V, and W, through the system, X = g(U,V) and Y = h(U,W). We propose restrictions to identify the marginal distribution of the common component...
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Published in | Econometric theory Vol. 33; no. 4; pp. 955 - 979 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
New York, USA
Cambridge University Press
01.08.2017
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Subjects | |
Online Access | Get full text |
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Summary: | This paper studies the paired nonseparable measurement error models, where two measurements, X and Y, are produced by mutually independent unobservables, U, V, and W, through the system, X = g(U,V) and Y = h(U,W). We propose restrictions to identify the marginal distribution of the common component U and the conditional distributions of X and Y given U. Applying this method to twin panel data, we find the following robust reporting patterns for years of education: (1) self reports are accurate only when the true years of education are 16 or 18, typically corresponding to advanced university degrees in the US education system; (2) sibling reports are accurate whenever the true years of education are 12, 14, 16, and 18, which are typical diploma years. |
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ISSN: | 0266-4666 1469-4360 |
DOI: | 10.1017/S0266466616000207 |