Tests of Hypotheses Arising in the Correlated Random Coefficient Model
42 Pages Posted: 4 Oct 2010
There are 2 versions of this paper
Tests of Hypotheses Arising in the Correlated Random Coefficient Model
Tests of Hypotheses Arising in the Correlated Random Coefficient Model
Abstract
This paper examines the correlated random coefficient model. It extends the analysis of Swamy (1971, 1974), who pioneered the uncorrelated random coefficient model in economics. We develop the properties of the correlated random coefficient model and derive a new representation of the variance of the instrumental variable estimator for that model. We develop tests of the validity of the correlated random coefficient model against the null hypothesis of the uncorrelated random coefficient model.
Keywords: correlated random coefficient models, instrumental variables
JEL Classification: C31
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Identification and Estimation of Local Average Treatment Effects
By Joshua D. Angrist and Guido W. Imbens
-
Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems
By David Card
-
By James J. Heckman, Lance Lochner, ...
-
Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts
-
By James J. Heckman and Edward Vytlacil
-
Earnings, Schooling, and Ability Revisited
By David Card