Identification and estimation of econometric models with group interactions, contextual factors and fixed effects

摘要

This paper considers identification and estimation of structural interaction effects in a so interaction model. The model allows unobservables in the group structure, which may be correla with included regressors. We show that both the endogenous andexogenous interaction effects be identified if there are sufficient variations in group sizes. We consider the estimation of the me by the conditional maximum likelihood and instrumental variables methods. For the case with la group sizes, the possible identification can be weak in the sense that the estimates converge distribution at low rates.