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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Bibliographic Details
Published inEconometric theory Vol. 33; no. 4; pp. 955 - 979
Main Authors Hu, Yingyao, Sasaki, Yuya
Format Journal Article
LanguageEnglish
Published New York, USA Cambridge University Press 01.08.2017
Subjects
Academic achievement
Econometrics
Economic theory
Education
Error analysis
Measurement
Panel data
United States > US
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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.
ISSN:0266-4666
1469-4360
DOI:10.1017/S0266466616000207