CIRJE-F-835	"Sharp Bounds in the Binary Roy Model"
Author Name	Henry, Marc and Ismael Mourifié
Date	January 2012
Full Paper	PDF file
Remarks	Submitted for publication.

Abstract

We derive the empirical content of an instrumental variables model of sectorial choice with binary outcomes. Assumptions on selection include the sim- ple, extended and generalized Roy models. The derived bounds are nonparametric intersection bounds and are simple enough to lend themselves to existing inference methods. Identi¯cation implications of exclusion restrictions are also derived.