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Unordered Monotonicity

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  • James J. Heckman
  • Rodrigo Pinto

Abstract

This paper defines and analyzes a new monotonicity condition for the identification of counterfactuals and treatment effects in unordered discrete choice models with multiple treatments, heterogeneous agents, and discrete†valued instruments. Unordered monotonicity implies and is implied by additive separability of choice of treatment equations in terms of observed and unobserved variables. These results follow from properties of binary matrices developed in this paper. We investigate conditions under which unordered monotonicity arises as a consequence of choice behavior. We characterize IV estimators of counterfactuals as solutions to discrete mixture problems.

Suggested Citation

  • James J. Heckman & Rodrigo Pinto, 2018. "Unordered Monotonicity," Econometrica, Econometric Society, vol. 86(1), pages 1-35, January.
    • Handle: RePEc:wly:emetrp:v:86:y:2018:i:1:p:1-35
    DOI: 10.3982/ECTA13777
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    References listed on IDEAS

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    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
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    11. repec:adr:anecst:y:2008:i:91-92:p:02 is not listed on IDEAS
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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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