Estimating Equilibrium Models of Sorting Across Locations

Datos Bibliográficos

ID9717153
AutoresPatrick Bayer (0000-0003-4884-5873, Duke University and NBER), Christopher Timmins (0000-0002-4792-4943, Duke University)
Año2007
Volumen117
Número518
Páginas353-374
Fecha de publicación2007-03-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2007.02021.x
OpenAlexW2166299928
IdiomaEN
Citas recibidas32
Referencias citadas16

While there is growing interest in measuring the size and scope of local spillovers, it is well understood that such spillovers cannot be distinguished from unobservable local attributes using solely the observed location decisions of individuals or firms. We propose an empirical strategy for recovering estimates of spillovers in the presence of unobserved local attributes for a broadly applicable class of equilibrium sorting models. Our approach relies on an IV strategy derived from the internal logic of the sorting model itself. We show practically how the strategy is implemented, provide intuition for our instruments, discuss the role of effective choice-set variation in identifying the model, and carry-out a series of Monte Carlo simulations to demonstrate performance in small samples. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007

Algorithm · Economics · Library science · Mathematical economics · Sorting · Computer Science · Consumer Market Behavior and Pricing · Economic and Environmental Valuation · History · Regional Economics and Spatial Analysis

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