Chapter 42
RESTRICTIONS OF ECONOMIC THEORY IN
NONPARAMETRIC METHODS*
ROSA L. MATZKIN
Northwestern University
Contents
Abstract 2524
1. Introduction 2524
2. Identification of nonparametric models using economic restrictions 2528
2.1. Definition of nonparametric identification 2528
2.2. Identification of limited dependent variable models 2530
2.3. Identification of functions generating regression functions 2535
2.4. Identification of simultaneous equations models 2536
3. Nonparametric estimation using economic restrictions 2537
3.1. Estimators that depend on the shape of the estimated function 2538
3.2. Estimation using seminonparametric methods 2544
3.3. Estimation using weighted average methods 2546
4. Nonparametric tests using economic restrictions 2548
4.1. Nonstatistical tests 2548
4.2. Statistical tests 255 1
5. Conclusions 2554
References 2554