This paper examines the correlated random coefficient model. It extends the analysis of Swamy (1971, 1974), who … pioneered the uncorrelated random coefficient model in economics. We develop the properties of the correlated random coefficient … tests of the validity of the correlated random coefficient model against the null hypothesis of the uncorrelated random …

acted on by them may not be known by the observing economist. Such models are called correlated random coefficient models … empirical relevance of the correlated random coefficient model to examine whether the additional complications associated with … instrumental variable estimator for the correlated random coefficient model. We apply the methods in this paper to the prototypical …