Questions tagged [identification]

Identification is the challenge of identifying the targeted channel or mechanism. Mostly, this is about disentangling correlation and causation.

Filter by
Sorted by
Tagged with
0 votes
0 answers
30 views

Critiques of "The impact of legalized abortion on crime."

The paper "The impact of legalized abortion on crime." by John J. Donohue III and Steven D. Levitt (of Freakonomics fame) is a rather famous paper from 2001. It is sometimes still cited in ...
Giskard's user avatar
  • 29.5k
1 vote
1 answer
47 views

Can you change monthly monetary shocks into quarterly ones?

There are now many series deriving monetary shocks at high frequency, e.g., Jarocinski-Karadi (AEJ:M, 2020), Bauer-Swanson (NBER MA, 2023). These typically come at a monthly frequency. However my ...
user37250's user avatar
  • 331
2 votes
1 answer
60 views

How to estimate $\gamma$ in the following model?

Suppose I have the following model: $Q=1(x'\beta+e>0)$, $D=1(x'\alpha+\gamma Q+u>0)$ and I want to estimate $\gamma$, the error terms $e,u$ are jointly normal. If $e$ and $u$ are correlated, can ...
ExcitedSnail's user avatar
2 votes
0 answers
36 views

Identification strategy

I am trying to find the relationship between one independent variable with two dependent ones. I was doing some reading, and I can use MANOVA to regress this. However, my original ID strategy was to ...
Maybeline Lee's user avatar
3 votes
1 answer
141 views

SVAR causal interpretation: shock effects vs effects between variables

Consider a structural vector autoregressive (SVAR) model. One way to define a SVAR model is $$ \begin{aligned} B_0 y_t = B_1 y_{t-1} + \cdots + B_p y_{t-p} + \omega_t \quad (1) \ , \end{aligned} $$ ...
vvv's user avatar
  • 111
2 votes
1 answer
157 views

Can a subset of variables in a lower triangular Cholesky identification scheme be ordered arbitrarily if we do not care about their shocks?

For example, in a three-variable SVAR model in Favero, C. A. (2001), the author uses Cholesky decomposition to identify only money shocks by ordering it last. Thus, both $p_t$ and $y_t$ affect $m_t$ ...
Emmanuel Ameyaw's user avatar
3 votes
1 answer
154 views

Identification of firm-worker fixed effect wage equation

Consider the traditional AKM model where $$ Y_{it}=X_{it}\beta+\psi_{j(i,t)}+\epsilon_{it} $$ for $i=1,...,N$ (individual index), $t=1,...,T$ (time index), $j=1,...,J$ (firm index), and $j(i,t)$ is ...
Star's user avatar
  • 436
1 vote
0 answers
42 views

Identifiability of Non-Parametric Utility Function?

I recently learned that EU characterized by independence and weak ordering is identifiable, but a utility function like: $U(x)=v_1(x)v_2(x)$ is not identifiable. Does it mean that "cardinal ...
High GPA's user avatar
  • 1,906
8 votes
3 answers
6k views

Identifying assumption meaning

I am hoping to get a good explanation regarding what is meant by an identifying assumption. In many articles, under empirical strategy, authors state that: we exploit firm level variation to identify ...
user508281's user avatar
0 votes
0 answers
19 views

Impactful fixed-effect identification with open data

For a replication project, I am looking for impactful (and ideally somewhat recent) papers that use fixed-effects as their main identification strategy and make their data publicly available. By ...
Martin Van der Linden's user avatar
1 vote
1 answer
49 views

Identification strategy for measuring impact of employee turnover on project quality

I am seeking help with identification strategy for figuring out causal direction in the following context: There is a company where project managers (PM) rotate every 3-7 years across the country/...
Amatya's user avatar
  • 111
3 votes
1 answer
595 views

Minimum sample size for cross-sectional RDD

I haven't done a regression discontinuity design (RDD) before. I know it requires a large sample size for identification, thus I fear that my sample size is not large enough. The study is cross-...
Yu Wang Dolby's user avatar
3 votes
1 answer
166 views

Specifying a Diff-In-Diff with multiple treated groups over multiple years

Suppose I have a group of 100 counties. Further suppose that the state decides to allocate a lump sum amount of money to some counties each year to boost spending on education in that county (until, ...
123's user avatar
  • 2,911
4 votes
1 answer
123 views

Economies of scale v.s. technological change

In Greene's Econometric Analysis, 7th edition, page 355, it is written that: A long-standing problem in the analysis of production functions has been the inability to separate economies of scale ...
yurnero's user avatar
  • 193
1 vote
0 answers
85 views

Trouble Deriving Indentification Scheme in Gertler-Karadi (2015) AEJ

I'm having trouble following a derivation that Gertler-Karadi (2015) AEJ http://pubs.aeaweb.org/doi/pdfplus/10.1257/mac.20130329 do in their paper on Footnote 4 on the bottom of page 52. I've tried ...
jussplayin16's user avatar
2 votes
1 answer
76 views

What is the link between econometric theory and applied work?

I just don't understand how the theory, particularly pertaining to parameter identification is relevant when conducting applied work. Why must we present a sound identification strategy when carrying ...
Carlos Restituyo Vassallo's user avatar
8 votes
3 answers
18k views

What does it mean to make an identification assumption?

Trying to understand this problem: Suppose you had access to a dataset that follows individuals from adolescence throughout adulthood. Each year, you observe earnings, educational attainment, ...
user avatar
12 votes
4 answers
863 views

What are the empirical techniques to show causation?

A simple linear regression only shows correlation between two variables. To establish causation, two commonly taught methods are IV regression and natural experiments. What are the other methods ...
Bravo's user avatar
  • 1,699
5 votes
1 answer
184 views

IV - Is this procedure valid?

I have three variables: $y$, $x_1$ and $z$. I'm interested in finding the effect of $x_1$ on $y$. Unfortunately $x_1$ is endogenous so I use an instrument z. I know that $z$ is correlated with $x_1$....
user4354's user avatar
14 votes
5 answers
14k views

What happens if the "control variables" are also endogenous?

I work in Political Economy, and a lot of the models include "innocent" control variables such as population, inequality, colonial legacy, etc. so that the author can claim unbiasedness on their ...
Heisenberg's user avatar
8 votes
1 answer
382 views

Identification with BBL

In the last few years, the estimator proposed by Bajari, Benkard, and Levin ('07) for dynamic games has been gaining popularity. It is relatively straight forward and is one of the only viable options ...
philE's user avatar
  • 1,040
3 votes
0 answers
109 views

Differences between LATE and Heckman Selection

I have heard that a paper by Heckman and Vytlacil demonstrate comparisons between nonparametric Heckman selection (NP Heckit) and the LATE (local average treatment effect) framework. Could someone ...
jmbejara's user avatar
  • 9,355