A1536
Title: Identification of dynamic panel logit models with fixed effects
Authors: Jiaying Gu - University of Toronto (Canada) [presenting]
Abstract: It is shown that the identification problem for a class of dynamic panel logit models with fixed effects has a connection to the truncated moment problem in mathematics. This connection is used to show that the sharp identified set of structural parameters is characterized by a set of moment equality and inequality conditions. This result provides sharp bounds in models where moment equality conditions do not exist or do not point at identifying the parameters. It is also shown that the sharp identified set of the non-parametric latent distribution of the fixed effects is characterized by a vector of its generalized moments and that the number of moments grows linearly in T. This final result point identifies, or sharply bound, specific classes of functionals, without solving an optimization problem with respect to the latent distribution. The identification result is illustrated with several examples and an empirical application for modelling children's respiratory conditions.
