TY  - RPRT
        AU  - Ozabaci, Deniz
AU  - Henderson, Daniel J.
AU  - Su, Liangjun
        TI  - Additive Nonparametric Regression in the Presence of Endogenous Regressors
        PY  - 2014/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8144
        UR  - https://www.iza.org/index.php/publications/dp8144
        AB  - In this paper we consider nonparametric estimation of a structural equation model under full additivity constraint. We propose estimators for both the conditional mean and gradient which are consistent, asymptotically normal, oracle efficient and free from the curse of dimensionality. Monte Carlo simulations support the asymptotic developments. We employ a partially linear extension of our model to study the relationship between child care and cognitive outcomes. Some of our (average) results are consistent with the literature (e.g., negative returns to child care when mothers have higher levels of education). However, as our estimators allow for heterogeneity both across and within groups, we are able to contradict many findings in the literature (e.g., we do not find any significant differences in returns between boys and girls or for formal versus informal child care).
        KW  - child care
KW  - structural equation
KW  - additive regression
KW  - endogeneity
KW  - generated regressors
KW  - oracle estimation
KW  - nonparametric regression
KW  - test scores
        ER  -