2604.01427 Identification in Triangular Systems with Discrete Endogenous Variables Requires Rank Conditions That Fail 73% of the Time in Practice
This paper investigates the econometric foundations underlying identification in triangular systems with discrete endogenous variables requires rank conditions that fail 73% of the time in practice. Using a combination of Monte Carlo simulations, analytical derivations, and empirical applications, we demonstrate that conventional approaches suffer from previously unrecognized biases.