Arbeitspapier
Identification with imperfect instruments
Dealing with endogenous regressors is a central challenge of applied research. The standard solution is to use instrumental variables that are assumed to be uncorrelated with unobservables. We instead assume (i) the correlation between the instrument and the error term has the same sign as the correlation between the endogenous regressor and the error term, and (ii) that the instrument is less correlated with the error term than is the endogenous regressor. Using these assumptions, we derive analytic bounds for the parameters. We demonstrate the method in two applications.
- Language
-
Englisch
- Bibliographic citation
-
Series: cemmap working paper ; No. CWP16/08
- Classification
-
Wirtschaft
- Subject
-
Ökonometrie
Korrelation
Fehlerkorrekturmodell
- Event
-
Geistige Schöpfung
- (who)
-
Nevo, Aviv
Rosen, Adam
- Event
-
Veröffentlichung
- (who)
-
Centre for Microdata Methods and Practice (cemmap)
- (where)
-
London
- (when)
-
2008
- DOI
-
doi:10.1920/wp.cem.2008.1608
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Nevo, Aviv
- Rosen, Adam
- Centre for Microdata Methods and Practice (cemmap)
Time of origin
- 2008
Other Objects (12)
Identification with imperfect instruments
Corrective regulation with imperfect instruments
Corrective regulation with imperfect instruments
Identification in discrete choice models with imperfect information
Bounds with Imperfect Instruments: Leveraging the Implicit Assumption of Intransitivity in Correlations
Identification of Barriers in International Trade under Imperfect Competition
Identification of Barriers in International Trade under Imperfect Competition
Separating Equilibria with Imperfect Certification
Stochastic Games with Imperfect Monitoring
Stochastic Games with Imperfect Monitoring
Imperfect competition with costly disposal
Imperfect Competition
Identification with imperfect instruments
Corrective regulation with imperfect instruments
Corrective regulation with imperfect instruments
Identification in discrete choice models with imperfect information
Bounds with Imperfect Instruments: Leveraging the Implicit Assumption of Intransitivity in Correlations
Identification of Barriers in International Trade under Imperfect Competition
Identification of Barriers in International Trade under Imperfect Competition
Separating Equilibria with Imperfect Certification
Stochastic Games with Imperfect Monitoring
Stochastic Games with Imperfect Monitoring
Imperfect competition with costly disposal
Imperfect Competition
Identification with imperfect instruments
Corrective regulation with imperfect instruments
Corrective regulation with imperfect instruments
Identification in discrete choice models with imperfect information
Bounds with Imperfect Instruments: Leveraging the Implicit Assumption of Intransitivity in Correlations
Identification of Barriers in International Trade under Imperfect Competition
Identification of Barriers in International Trade under Imperfect Competition
Separating Equilibria with Imperfect Certification
Stochastic Games with Imperfect Monitoring
Stochastic Games with Imperfect Monitoring
Imperfect competition with costly disposal