Estimating endogenous effects on ordinal outcomes

Andrew D Chesher; Adam Rosen; Zahra Siddique

doi:10.1162/rest_a_01348

Estimating endogenous effects on ordinal outcomes

Andrew D Chesher, Adam Rosen^*, Zahra Siddique

^*Corresponding author for this work

Research output: Contribution to journal › Article (Academic Journal) › peer-review

Abstract

We examine the use of instrumental variable (IV) methods to measure the effect of a ceteris paribus change in an endogenous variable on an ordered outcome. Specifically, we use these methods to investigate the effect of neighborhood characteristics on subjective well-being (SWB) among participants in the Moving to Opportunity (MTO) housing voucher experiment. We find that the estimated positive effect of a decrease in neighborhood poverty on SWB is sensitive to the specification of the first stage auxiliary equation for endogenous neighborhood poverty. Our results highlight the influential role of control function restrictions in complete triangular models.

Original language	English
Journal	Review of Economics and Statistics
DOIs	https://doi.org/10.1162/rest_a_01348
Publication status	Accepted/In press - 14 Jun 2023

Access to Document

10.1162/rest_a_01348Licence: CC BY

https://drive.google.com/file/d/1ZHGbN8uLHYRT6PhsBizsYHcYMeUa1fVJ/view

Handle.net

Persistent link

Cite this

@article{08381071e825421296cf9007ae071ef3,

title = "Estimating endogenous effects on ordinal outcomes",

abstract = "We examine the use of instrumental variable (IV) methods to measure the effect of a ceteris paribus change in an endogenous variable on an ordered outcome. Specifically, we use these methods to investigate the effect of neighborhood characteristics on subjective well-being (SWB) among participants in the Moving to Opportunity (MTO) housing voucher experiment. We find that the estimated positive effect of a decrease in neighborhood poverty on SWB is sensitive to the specification of the first stage auxiliary equation for endogenous neighborhood poverty. Our results highlight the influential role of control function restrictions in complete triangular models.",

author = "Chesher, {Andrew D} and Adam Rosen and Zahra Siddique",

year = "2023",

month = jun,

day = "14",

doi = "10.1162/rest_a_01348",

language = "English",

journal = "Review of Economics and Statistics",

issn = "0034-6535",

publisher = "Massachusetts Institute of Technology (MIT) Press",

}

TY - JOUR

T1 - Estimating endogenous effects on ordinal outcomes

AU - Chesher, Andrew D

AU - Rosen, Adam

AU - Siddique, Zahra

PY - 2023/6/14

Y1 - 2023/6/14

N2 - We examine the use of instrumental variable (IV) methods to measure the effect of a ceteris paribus change in an endogenous variable on an ordered outcome. Specifically, we use these methods to investigate the effect of neighborhood characteristics on subjective well-being (SWB) among participants in the Moving to Opportunity (MTO) housing voucher experiment. We find that the estimated positive effect of a decrease in neighborhood poverty on SWB is sensitive to the specification of the first stage auxiliary equation for endogenous neighborhood poverty. Our results highlight the influential role of control function restrictions in complete triangular models.

AB - We examine the use of instrumental variable (IV) methods to measure the effect of a ceteris paribus change in an endogenous variable on an ordered outcome. Specifically, we use these methods to investigate the effect of neighborhood characteristics on subjective well-being (SWB) among participants in the Moving to Opportunity (MTO) housing voucher experiment. We find that the estimated positive effect of a decrease in neighborhood poverty on SWB is sensitive to the specification of the first stage auxiliary equation for endogenous neighborhood poverty. Our results highlight the influential role of control function restrictions in complete triangular models.

U2 - 10.1162/rest_a_01348

DO - 10.1162/rest_a_01348

M3 - Article (Academic Journal)

SN - 0034-6535

JO - Review of Economics and Statistics

JF - Review of Economics and Statistics

ER -

Estimating endogenous effects on ordinal outcomes

Abstract

Access to Document

Handle.net

Fingerprint

Cite this