Overidentification Tests with Grouped Data

This paper examines the validity of overidentification tests and exogeneity tests in the presence of grouped data. We find that even a small intra-group correlation, when instruments do not vary within groups, may generate a substantial bias in the standard overidentification tests described in textbooks.

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Year of publication:	1998-02
Authors:	Hoxby, Caroline ; Paserman, M. Daniele
Institutions:	National Bureau of Economic Research (NBER)

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Extent:	application/pdf
Series:	NBER Technical Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 0223
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005601539