A Note on the Identification in Two Equations Probit Model with Dummy Endogenous Regressor
11 Pages Posted: 15 Oct 2013 Last revised: 11 Jan 2015
Date Written: October 17, 2014
This paper deals with the question whether exclusion restrictions on the exogenous regressors are necessary to identify two equation probit models with endogenous dummy regressor. We show that Wilde (2000)’s criterion is insufficient for (point) identification.
Keywords: Probit model, Endogenous dummy regressor, Partial identification
JEL Classification: C35
Suggested Citation: Suggested Citation