The Empirical Content of the Roy Model

Heckman, James J.; Honoré, Bo E.

doi:10.2307/2938303

Cited by 628 publications

(450 citation statements)

References 23 publications

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“…However, before we test these it is important to study the identifiability of these distributions. The problem is somewhat similar to the identification problem in the Roy model that has been studied recently by Heekman and Honoré (1990). We leave this to future work.…”

Section: Discussionmentioning

confidence: 81%

Rent assistance and housing demand

Koning¹,

Ridder

1997

Journal of Public Economics

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1 Tlie authoxs thank paitidpants at a seminar in Konstanz fox theii comments. Reraaining eirors are ours. The Cential Bureau of Statistics ptovided the data. AbstractWe examine the effect of a rent subsidy program, Rent Assistance, on the demand for rental housing in The Netherlands. Low-income households with a rent that exceeds a norm rent, but is smaller than a maximum rent are eligible for this subsidy, that is equal to a fraction of the difference between the rent and the norm rent. The RA program lowers the marginal price of housing services, but in order to get this price reduction households have to pay an implicit entry fee. To estimate the effect of the program we develop a structural model of housing demand. This model takes account of the partial take-up of the subsidy. We estimate a reduced form that is compatible with the structural model and we test the restrictions that the structural model imposes on the reduced form. We find that if we allow for application costs the structural restrictions are not rejected by the data. We use the model to decompose the observed difference in housing demand into income-, price and preference heterogeneity effects, to examine the effect of application costs and to study the total effect of RA on housing demand.

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Section: Discussionmentioning

confidence: 81%

Rent assistance and housing demand

Koning¹,

Ridder

1997

Journal of Public Economics

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“…When 1−F (·) is log-concave (which is implied by the density of ε i being log-concave; see Heckman and Honoré (1990)), the right-hand side is an increasing function of g (X ′ i β) and hence of X ′ i β . See the Appendix.…”

Section: Introductionmentioning

confidence: 99%

Estimation of a Transformation Model with Truncation, Interval Observation and Time-Varying Covariates

Honoré

2008

SSRN Journal

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“…However, notice that as Heckman and Honoré (1990) point out, this is just another version of the Roy model. Rather than observe the maximum of Y f i and Y hi , the econometrician observes the minimum of log(T f i ) and log(T hi ).…”

Section: Competing Risks Modelmentioning

confidence: 99%

“…However, Theorems 7 and 8 of Heckman and Honoré (1990) show that when one relaxes the log normality assumption, without exclusion restrictions in the outcome equation, the model is no longer identified. This is true despite the strong assumption of agent income maximization.…”

Section: (Proof In Appendix)mentioning

confidence: 99%

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Identification of Models of the Labor Market

French¹,

Taber²

2011

Handbook of Labor Economics

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This chapter discusses identification of common selection models of the labor market.We start with the classic Roy model and show how it can be identified with exclusion restrictions. We then extend the argument to the generalized Roy model, treatment effect models, duration models, search models, and dynamic discrete choice models.In all cases, key ingredients for identification are exclusion restrictions and support conditions.

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The Empirical Content of the Roy Model

Cited by 628 publications

References 23 publications

Rent assistance and housing demand

Rent assistance and housing demand

Estimation of a Transformation Model with Truncation, Interval Observation and Time-Varying Covariates

Identification of Models of the Labor Market

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