On the Testability of Identification in Some Nonparametric Models With Endogeneity
Ivan A. Canay, Andres Santos, Azeem M. Shaikh
Econometrica · 2013 · Volume 81 · Issue 6
Abstract
This paper examines three distinct hypothesis testing problems that arise in the context of identification of some nonparametric models with endogeneity. The first hypothesis testing problem we study concerns testing necessary conditions for identification in some nonparametric models with endogeneity involving mean independence restrictions. These conditions are typically referred to as completeness conditions. The second and third hypothesis testing problems we examine concern testing for identification directly in some nonparametric models with endogeneity involving quantile independence restrictions. For each of these hypothesis testing problems, we provide conditions under whichanytest will have power no greater than size againstanyalternative. In this sense, we conclude that no nontrivial tests for these hypothesis testing problems exist.
Keywords
Instrumental variables, identification, completeness, bounded completeness
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