Quantile regression with censoring and endogeneity / Victor Chernozhukov, Iván Fernández-Val, Amanda E. Kowalski.

Author/creator Chernozhukov, Victor
Other author Fernández-Val, Iván.
Other author Kowalski, Amanda E.
Other author National Bureau of Economic Research.
Format Electronic
Publication InfoCambridge, MA : National Bureau of Economic Research,
Supplemental ContentFull text available from NBER Working Papers

SeriesNBER working paper series ; working paper 16997
Working paper series (National Bureau of Economic Research : Online) ; working paper no. 16997. UNAUTHORIZED
Summary "In this paper, we develop a new censored quantile instrumental variable (CQIV) estimator and describe its properties and computation. The CQIV estimator combines Powell (1986) censored quantile regression (CQR) to deal semiparametrically with censoring, with a control variable approach to incorporate endogenous regressors. The CQIV estimator is obtained in two stages that are nonadditive in the unobservables. The first stage estimates a nonadditive model with infinite dimensional parameters for the control variable, such as a quantile or distribution regression model. The second stage estimates a nonadditive censored quantile regression model for the response variable of interest, including the estimated control variable to deal with endogeneity. For computation, we extend the algorithm for CQR developed by Chernozhukov and Hong (2002) to incorporate the estimation of the control variable. We give generic regularity conditions for asymptotic normality of the CQIV estimator and for the validity of resampling methods to approximate its asymptotic distribution. We verify these conditions for quantile and distribution regression estimation of the control variable. We illustrate the computation and applicability of the CQIV estimator with numerical examples and an empirical application on estimation of Engel curves for alcohol"--National Bureau of Economic Research web site.
General noteTitle from PDF file as viewed on 7/7/2011.
Bibliography noteIncludes bibliographical references.
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Other formsAlso available in print.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2011657211

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