Semiparametric estimation of panel data models without monotonicity or separability

Nonseparable panel data models with fixed effects have received a great deal of attention in the literature. Monotonicity is a common assumption in these settings, which may be violated in practice. Monotonicity-based estimators are inconsistent and the associated inference misleading under misspecification. In this paper, we propose some semiparametric estimators without imposing the monotonicity restriction. Under regularity conditions, our estimators are consistent and asymptotically normal. Our simulation suggests that our estimators work well in finite samples. (C) 2018 Elsevier B.V. All rights reserved.