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Econometrica Vol. 87 No. 3 2019

Identification With Additively Separable Heterogeneity

R. G. D. Allen1; John Rehbeck2

1 Department of Economics, University of Western Ontario · 2 Department of Economics, The Ohio State University

Abstract

This paper provides nonparametric identification results for a class of latent utility models with additively separable unobservable heterogeneity. These results apply to existing models of discrete choice, bundles, decisions under uncertainty, and matching. Under an independence assumption, such models admit a representative agent. As a result, we can identify how regressors alter the desirability of goods using only average demands. Moreover, average indirect utility (“welfare”) is identified without needing to specify or identify the distribution of unobservable heterogeneity.

DOI
10.3982/ecta15867
Volume
87
Issue
3
Pages
1021-1054
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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