Microeconomic models with latent variables: Applications of measurement error models in empirical industrial organization and labor economics

Arbeitspapier

This paper reviews recent developments in nonparametric identi.cation of mea- surement error models and their applications in applied microeconomics, in particular, in empirical industrial organization and labor economics. Measurement error models describe mappings from a latent distribution to an observed distribution. The identification and estimation of measurement error models focus on how to obtain the latent distribution and the measurement error distribution from the observed distribution. Such a framework may be suitable for many microeconomic models with latent variables, such as models with unobserved heterogeneity or unobserved state variables and panel data models with fixed effects. Recent developments in measurement error models allow very flexible specification of the latent distribution and the measurement error distribution. These developments greatly broaden economic applications of measurement error models. This paper provides an accessible introduction of these technical results to empirical researchers so as to expand applications of measurement error models.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: cemmap working paper ; No. CWP03/15

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Econometrics ; Semiparametric and Nonparametric Methods: General ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Single Equation Models: Single Variables: Instrumental Variables (IV) Estimation ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Multiple or Simultaneous Equation Models: Instrumental Variables (IV) Estimation ; Econometrics of Games and Auctions ; Game Theory and Bargaining Theory: General ; Bargaining Theory; Matching Theory ; Production and Organizations: General ; Personal Income, Wealth, and Their Distributions ; Auctions ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Micro-Based Behavioral Economics: General‡ ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Education and Research Institutions: General ; Labor Force and Employment, Size, and Structure ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General ; Market Structure, Firm Strategy, and Market Performance: General
• Thema: measurement error model ; errors-in-variables ; latent variable ; unobserved heterogeneity ; unobserved state variable ; mixture model ; hidden Markov model ; dynamic discrete choice ; nonparametric identification ; conditional independence ; endogeneity ; instrument ; type ; unemployment rates ; IPV auction ; multiple equilibria ; incomplete information game ; belief ; learning model ; fixed effect ; panel data model ; cognitive and noncognitive skills ; matching ; income dynamics

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hu, Yingyao
• Ereignis: Veröffentlichung
• (wer): Centre for Microdata Methods and Practice (cemmap)
• (wo): London
• (wann): 2015

Weitere Informationen

• DOI: doi:10.1920/wp.cem.2015.0315
• Handle: http://hdl.handle.net/10419/130025
• Letzte Aktualisierung: 12.07.2024, 13:22 MESZ