Economic variables are often measured with errors and may be endogenous. This paper extends Chesher (2003) and gives new identification results for the ratio of partial effects in a class of nonseparable index models with measurement error and endogeneity. The identification restrictions include a triangular system and the derivative of some conditional mean functions being nonzero. An example that motivates the paper is identification of the labor supply elasticity.
- Labor supply elasticity
- Measurement error and endogeneity
- Nonclassical measurement error
ASJC Scopus subject areas
- Economics and Econometrics