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Single Market Nonparametric Identification of Multi-Attribute Hedonic Equilibrium Models

Author

Listed:
  • Victor Chernozhukov

    (MIT - Massachusetts Institute of Technology)

  • Alfred Galichon

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, MIT - Massachusetts Institute of Technology)

  • Marc Henry

    (MIT - Massachusetts Institute of Technology)

  • Brendan Pass

    (MIT - Massachusetts Institute of Technology)

Abstract

This paper derives conditions under which preferences and technology are nonparametrically identified in hedonic equilibrium models, where products are differentiated along more than one dimension and agents are characterized by several dimensions of unobserved heterogeneity. With products differentiated along a quality index and agents characterized by scalar unobserved heterogeneity, single crossing conditions on preferences and technology provide identifying restrictions. We develop similar shape restrictions in the multi-attribute case and we provide identification results from the observation of a single market. We thereby extend identification results in Matzkin (2003) and Heckman, Matzkin, and Nesheim (2010) to accommodate multiple dimensions of unobserved heterogeneity.

Suggested Citation

  • Victor Chernozhukov & Alfred Galichon & Marc Henry & Brendan Pass, 2018. "Single Market Nonparametric Identification of Multi-Attribute Hedonic Equilibrium Models," Working Papers hal-01169655, HAL.
    • Handle: RePEc:hal:wpaper:hal-01169655
    DOI: 10.1920/wp.cem.2019.2719
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-01169655v2
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    References listed on IDEAS

    as
    1. Arnaud Dupuy & Alfred Galicho & Marc Henry, 2014. "Entropy methods for identifying hedonic models," Working Papers 2014/21, Maastricht School of Management.
    2. Ivar Ekeland & James J. Heckman & Lars Nesheim, 2004. "Identification and Estimation of Hedonic Models," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 60-109, February.
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    Cited by:

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    2. Odran Bonnet & Alfred Galichon & Yu-Wei Hsieh & Keith O’Hara & Matt Shum, 2022. "Yogurts Choose Consumers? Estimation of Random-Utility Models via Two-Sided Matching," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 3085-3114.
    3. Florian Gunsilius, 2018. "Point-identification in multivariate nonseparable triangular models," Papers 1806.09680, arXiv.org.
    4. Dizdar, Deniz & Moldovanu, Benny, 2016. "On the importance of uniform sharing rules for efficient matching," Journal of Economic Theory, Elsevier, vol. 165(C), pages 106-123.
    5. Pierre-André Chiappori & Bernard Salanié, 2016. "The Econometrics of Matching Models," Journal of Economic Literature, American Economic Association, vol. 54(3), pages 832-861, September.

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    More about this item

    Keywords

    Optimal Transport; Multidimensional Unobserved Heterogeneity; Nonparametric Identification; Hedonic Equilibrium;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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