On the Nonparametic Identification of Nonlinear Simultaneous Equations Models: Comment on B. Brown (1983) and Roehrig (1988)

14 Pages Posted: 20 Oct 2004

See all articles by Steven Berry

Steven Berry

Yale University - Department of Economics; National Bureau of Economic Research (NBER); Yale University - Cowles Foundation

C. Lanier Benkard

Stanford Graduate School of Business; National Bureau of Economic Research (NBER)

Date Written: October 2004

Abstract

This note revisits the identification theorems of B. Brown (1983) and Roehrig (1988). We describe an error in the proofs of the main identification theorems in these papers, and provide an important counterexample to the theorems on the identification of the reduced form. Specifically, contrary to the theorems, the reduced form of a nonseparable simultaneous equations model is not identified even under the assumptions of those papers. We conclude the note with a conjecture that it may be possible to use classical exclusion restrictions to recover some of the key implications of the theorems.

Keywords: Econometrics

JEL Classification: C14, C31

Suggested Citation

Berry, Steven T. and Benkard, C. Lanier, On the Nonparametic Identification of Nonlinear Simultaneous Equations Models: Comment on B. Brown (1983) and Roehrig (1988) (October 2004). Cowles Foundation Discussion Paper No. 1482; Stanford GSB Working Paper No. 1868, Available at SSRN: https://ssrn.com/abstract=601941

Steven T. Berry (Contact Author)

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8264
United States
203-432-3556 (Phone)
203-432-6323 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

C. Lanier Benkard

Stanford Graduate School of Business ( email )

Stanford, CA 94305-5015
United States
650-723-4124 (Phone)
650-725-0468 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
62
Abstract Views
1,148
rank
379,271
PlumX Metrics