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- W4382894037 abstract "In this work we propose a functional concurrent regression model to estimate labor supply elasticities over the years 1988 through 2014 using Current Population Survey data. Assuming, as is common, that individuals' wages are endogenous, we introduce instrumental variables in a two-stage least squares approach to estimate the desired labor supply elasticities. Furthermore, we tailor our estimation method to sparse functional data. Though recent work has incorporated instrumental variables into other functional regression models, to our knowledge this has not yet been done in the functional concurrent regression model, and most existing literature is not suited for sparse functional data. We show through simulations that this two-stage least squares approach greatly eliminates the bias introduced by a naive model (i.e. one that does not acknowledge endogeneity) and produces accurate coefficient estimates for moderate sample sizes." @default.
- W4382894037 created "2023-07-03" @default.
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- W4382894037 date "2023-07-02" @default.
- W4382894037 modified "2023-10-18" @default.
- W4382894037 title "Instrumental variable estimation for functional concurrent regression models" @default.
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- W4382894037 doi "https://doi.org/10.1080/02664763.2023.2229968" @default.
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