This paper studies the identification of partial differences of nonseparable structural functions. The paper considers triangular structures with no more stochastic unobservables than observable outcomes, that exhibit a degree of monotonicity with respect to variation in certain stochastic unobservables. It is shown that, the existence of a set of instrumental values of covariates, over which the stochastic unobservables exhibit local quantile invariance and over which a local order condition holds, defines a model which identifies certain partial differences of structural functions. This result is useful when covariates exhibit discrete variation. The paper also considers the identification of partial derivatives in smooth structures when covariates exhibit continuous variation.
Authors
![Andrew Chesher](/sites/default/files/styles/square_desktop/public/2022-07/Andrew_Chesher.jpg?itok=_w2THcSE)
Research Fellow University College London
Andrew is the Director of the ESRC Centre for Microdata Methods and Practice (cemmap) and Professor of Economics and Economic Measurement at UCL.
Working Paper details
- DOI
- 10.1920/wp.cem.2002.1702
- Publisher
- IFS
Suggested citation
Chesher, A. (2002). Instrumental Values. London: IFS. Available at: https://ifs.org.uk/publications/instrumental-values (accessed: 30 June 2024).
Related documents
More from IFS
Understand this issue
![School girls in Rajasthan](/sites/default/files/styles/square_desktop/public/2022-11/Schoolgirls-in-Rajasthan_0.jpg?itok=aboMI9Wt)
Gender norms, violence and adolescent girls’ trajectories: Evidence from India
24 October 2022
![Isabel Stockton](/sites/default/files/styles/square_desktop/public/2024-06/Isabel-public-finances.jpg?itok=JfdJNN7F)
What are the challenges in getting debt on a falling path?
28 June 2024
![Microphone](/sites/default/files/styles/square_desktop/public/2024-06/Microphone.jpg?itok=soM7Wvbz)
Election Special: Your questions answered
27 June 2024
Policy analysis
![Publication graphic](/sites/default/files/styles/portrait/public/2022-06/IFS-publication-graphic.png?itok=QoQz8AN4)
ABC of SV: Limited Information Likelihood Inference in Stochastic Volatility Jump-Diffusion Models
We develop novel methods for estimation and filtering of continuous-time models with stochastic volatility and jumps using so-called Approximate Bayesian Compu- tation which build likelihoods based on limited information.
12 August 2014
![Publication graphic](/sites/default/files/styles/portrait/public/2022-06/IFS-publication-graphic.png?itok=QoQz8AN4)
Assessing the economic benefits of education: reconciling microeconomic and macroeconomic approaches
This CAYT report discusses the strengths and limitations of several approaches to assessing the effect of education on productivity.
14 March 2013
![Publication graphic](/sites/default/files/styles/portrait/public/2022-06/IFS-publication-graphic.png?itok=QoQz8AN4)
Misreported schooling, multiple measures and returns to educational qualifications
We provide a number of contributions of policy, practical and methodological interest to the study of the returns to educational qualifications in the presence of misreporting.
1 February 2012
Academic research
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-05/CWP1124-Inference-for-rank-rank-regressions_Page_01.jpg?itok=iJl8Ja1B)
Inference for rank-rank regressions
28 May 2024
![Journal Article Cover](/sites/default/files/styles/portrait/public/2024-02/Fiscal%20Studies%20-%202024%20-%20%20-%20Issue%20Information_Page_1.jpg?itok=GfdQz4AB)
Understanding Society: minimising selection biases in data collection using mobile apps
2 February 2024
![Working paper cover](/sites/default/files/styles/portrait/public/2024-06/WP202428-The-impact-of%20labour-demand-shocks-when-occupational-labour-supplies-are-heterogeneous.jpg?itok=Erq9-V9O)
The impact of labour demand shocks when occupational labour supplies are heterogeneous
28 June 2024