02087cam a22002657 4500001000700000003000500007005001700012008004100029100001900070245014300089260006600232490004200298500001900340520096900359530006101328538007201389538003601461690005601497690005601553700001801609710004201627830007701669856003801746856003701784w17557NBER20141026013448.0141026s2011 mau||||fs|||| 000 0 eng d1 aFox, Jeremy T.10aIdentifying Demand with Multidimensional Unobservablesh[electronic resource]:bA Random Functions Approach /cJeremy T. Fox, Amit Gandhi. aCambridge, Mass.bNational Bureau of Economic Researchc2011.1 aNBER working paper seriesvno. w17557 aNovember 2011.3 aWe explore the identification of nonseparable models without relying on the property that the model can be inverted in the econometric unobservables. In particular, we allow for infinite dimensional unobservables. In the context of a demand system, this allows each product to have multiple unobservables. We identify the distribution of demand both unconditional and conditional on market observables, which allows us to identify several quantities of economic interest such as the (conditional and unconditional) distributions of elasticities and the distribution of price effects following a merger. Our approach is based on a significant generalization of the linear in random coefficients model that only restricts the random functions to be analytic in the endogenous variables, which is satisfied by several standard demand models used in practice. We assume an (unknown) countable support for the the distribution of the infinite dimensional unobservables. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aC0 - General2Journal of Economic Literature class. 7aL0 - General2Journal of Economic Literature class.1 aGandhi, Amit.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w17557.4 uhttp://www.nber.org/papers/w1755741uhttp://dx.doi.org/10.3386/w17557