Control Function Methods in Applied Econometrics

摘要: This paper provides an overview of control function (CF) methods for solving the problem endogenous explanatory variables (EEVs) in linear and nonlinear models. CF often can be justified situations where “plug- in” approaches are known to produce inconsistent estimators parameters partial effects. Usually, require fewer assumptions than maximum likelihood, computationally simpler. The recent focus on estimating average effects, along with theoretical results nonparametric identification, suggests some simple, flexible parametric strategies. approach handling discrete EEVs models is more controversial but approximate solutions available.