Endogeneity and instrumental variables
Resurgence of the Endogeneity-Backed Instrumental Variable Methods
... of instrumental variables (IV) and associated methods for simultaneous equations and for “structural” estimation constitute one of the ...of variables in ‘the essential asymmetry between cause and ...
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Spurious Instrumental Variables
... Table 2: Rejection rates of t δ ˆ under autocorrelated innovations results may complete those obtained in Phillips and Hansen (1990) and Hansen and Phi- llips (1990); the latter demonstrated that IV is able to provide ...
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Spurious Instrumental Variables
... Table 2: Rejection rates of t δ ˆ under autocorrelated innovations results may complete those obtained in Phillips and Hansen (1990) and Hansen and Phi- llips (1990); the latter demonstrated that IV is able to provide ...
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Two-Sample Instrumental Variables Estimators
... 1 In a subsequent paper on split-sample IV estimation as a method for avoiding finite-sample bias when the instru- ments are only weakly correlated with the endogenous regressors, Angrist and Krueger (1995) noted the ...
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On the equivalence of instrumental variables estimators for linear models
... Abstract This note shows the equivalence of different instrumental variables estimators to solve the endogeneity problem in linear models when valid instruments are available. We demonstrate that the ...
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Using instrumental variables techniques in economics and finance
... Introduction Unobservable or latent factors Another commonly encountered problem involves unobservable factors. Both y and x may be affected by latent factors such as ability. Consider a regression of (log) earnings (y ...
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Income and Armed Civil Conflict: An Instrumental Variables Approach
... economic variables and the onset of an armed civil ...potential endogeneity issues, especially for large country ...Using instrumental variables methods and global panel data for the period ...
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High-dimensional instrumental variables regression and confidence sets
... Keywords: Instrumental variables, sparsity, endogeneity, confidence sets, variable selection, unknown variance, robust- ness to identification, bias ...
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Lecture 15. Endogeneity & Instrumental Variable Estimation
... Example: The data set ivdat.dta contains information on the number of GCSE passes of a sample of 16 year olds and the total income of the household in which they live. Income tends to be measured with error. Individuals ...
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Nonparametric instrumental regression with errors in variables
... 5. Conclusion In this article we have proposed a nonparametric estimation method that simultaneously deals with endogeneity and classical measurement error. Employing the wavelet approach enables us to use a ...
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Instrumental Variables and Mendelian Randomization With Invalid Instruments
... the endogeneity is small and close to zero, with the dominance being greater for weak ...of endogeneity, oracle TSLS, which knows exactly which instru- ments are valid and invalid, does ...
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Spurious Instrumental Variables
... Keywords: Spurious Regression, Stationarity, Unit Root, Long Memory JEL Classification: C10, C12, C13, C22. Introduction During the last 30 years econometric theory has undergone a revolution. In the late seventies, ...
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Spurious Instrumental Variables
... Spurious regression phenomenon has been recognized for a wide range of Data Gene- rating Processes: driftless unit roots, unit roots with drift, long memory, trend and broken-trend stationarity, etc. The usual framework ...
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Instrumental Variables in the Long Run
... Rectangular nodes represent observed variables and circular nodes represent unobserved variables. The dotted line represent the first stage in a conventional 2SLS estimation. think the top row of Figure 1 ...
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Determinantal generalizations of instrumental variables
... AND MATHIAS DRTON Abstract. Linear structural equation models relate the components of a ran- dom vector using linear interdependencies and Gaussian noise. Each such model can be naturally associated with a mixed graph ...
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Instrumental Variables and Regression Discontinuity
... Instrumental Variables (without additional covariates) The issue is that, while this is true in population moments, when we replace these equations with their sample analogs (means instead of expectations) ...
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Averaged Instrumental Variables Estimators
... averaged instrumental variables estimators as a way to deal with many weak ...alternative instrumental-variable-selection approaches when the strength levels of individual IV are similar with each ...
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Estimation with many instrumental variables
... of instrumental variables estimation often give imprecise ...valid instrumental variables can improve ...many instrumental variables is that conventional asymptotic ...
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Bayesian inference with monotone instrumental variables
... ents’ education, and Table 2 presents corresponding summary statistics on those posterior distributions. First we compare the left-top and left-bottom panels of Figure 1, which contrasts the role of educated parents on ...
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The method of instrumental variables is a signature technique in the
... Instrumental Variables and Omitted Variables Although instrumental variables methods are still widely used to estimate systems of simultaneous equations and to counteract bias from ...
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