2017/09/27 by Victor Chernozhukov, Chernozhukov, Victor, Alfred Galichon +5
Economics, Econometrics and Finance · #Econometrics (econ.EM) #Economic Policies and Impacts #Economic theories and models #Economics of Agriculture and Food Markets #FOS: Economics and business #Theoretical Economics (econ.TH)
paper · pdf · doi:10.48550/arxiv.1709.09570
openalex publication_date 2017/09/27 · openalex created_date 2022/08/15 · openalex updated_date 2026/07/28
This paper derives conditions under which preferences and technology are\nnonparametrically identified in hedonic equilibrium models, where products are\ndifferentiated along more than one dimension and agents are characterized by\nseveral dimensions of unobserved heterogeneity. With products differentiated\nalong a quality index and agents characterized by scalar unobserved\nheterogeneity, single crossing conditions on preferences and technology provide\nidentifying restrictions in Ekeland, Heckman and Nesheim (2004) and Heckman,\nMatzkin and Nesheim (2010). We develop similar shape restrictions in the\nmulti-attribute case. These shape restrictions, which are based on optimal\ntransport theory and generalized convexity, allow us to identify preferences\nfor goods differentiated along multiple dimensions, from the observation of a\nsingle market. We thereby derive nonparametric identification results for\nnonseparable simultaneous equations and multi-attribute hedonic equilibrium\nmodels with (possibly) multiple dimensions of unobserved heterogeneity. One of\nour results is a proof of absolute continuity of the distribution of\nendogenously traded qualities, which is of independent interest.\n