Estimating Equilibrium Models of Sorting Across Locations
提出一种工具变量策略，用于在存在不可观测的本地特征时，从个体或企业的选址行为中分离出本地溢出效应，并通过蒙特卡洛模拟验证小样本表现。
While there is growing interest in measuring the size and scope of local spillovers, it is well understood that such spillovers cannot be distinguished from unobservable local attributes using solely the observed location decisions of individuals or firms. We propose an empirical strategy for recovering estimates of spillovers in the presence of unobserved local attributes for a broadly applicable class of equilibrium sorting models. Our approach relies on an IV strategy derived from the internal logic of the sorting model itself. We show practically how the strategy is implemented, provide intuition for our instruments, discuss the role of effective choice-set variation in identifying the model, and carry-out a series of Monte Carlo simulations to demonstrate performance in small samples. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.