Semiparametric Varying Coefficient Models with Endogenous Covariates

Though parametric methods are popular in applied settings, practitioners often require nonparametric alternatives. However, fully nonparametric methods are known to suffer from the curse of dimensionality, which limits their practical application. Semiparametric methods occupy a middle ground, have the desirable feature that they are both exible, and provide an attractive alternative to fully nonparametric methods, while attenuating the …