Control functions in nonseparable simultaneous equations models

By Richard Blundell, Rosa L. Matzkin. 2014

54 citations recorded by the source corpus.

The control function approach (Heckman and Robb (1985)) in a system of linear simultaneous equations provides a convenient procedure to estimate one of the functions in the system using reduced form residuals from the other functions as additional regressors. The conditions on the structural system under which this procedure can be used in nonlinear and nonparametric simultaneous equations has thus far been unknown. In this paper, we define a new property of functions called control function separability and show it provides a complete characterization of the structural systems of simultaneous equations in which the control function procedure is valid.

Subfields: Control and Systems Engineering

View Paper: https://www.semanticscholar.org/paper/3e1bfc929f74b8b09aeaa4c2366781e3df522f20

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Control and Systems Engineering

Citations in the corpus

Random Coefficients on Endogenous Variables in Simultaneous Equations Models (2014, background): “…nonparametric simultaneous equations models also allows for nonseparable errors (see Brown 1983, Roehrig 1988, Benkard and Berry 2006, Matzkin 2008, Blundell and Matzkin 2014, and Berry and Haile 2011, 2014), but these papers again restrict the dimension of unobservables by assuming that the…”
The influence function of semiparametric estimators (2015, background): “Endogeneity can be allowed for using control functions, as in Hausman and Newey (2016), but existence of control functions imposes strong restrictions as in Blundell and Matzkin (2014).”
Do Parents Value School Effectiveness? (2020, background): “The λk(·)’s serve as “control functions” correcting for selection on unobservables (Heckman and Robb, 1985; Blundell and Matzkin, 2014; Wooldridge, 2015).”