Search Results - subject:"Instrumental Variables."

How Linear Models Can Mask Non-Linear Causal Relationships. An Application to Family Size and Children's Education

Mogstad, Magne; Wiswall, Matthew - 2009

Many empirical studies specify outcomes as a linear function of endogenous regressors when conducting instrumental variable (IV) estimation. We show that commonly used tests for treatment effects, selection bias, and treatment effect heterogeneity are biased if the true relationship is...

Persistent link: https://www.econbiz.de/10011968356

Aid Eff ectiveness: New Instrument, New Results?

Frot, Emmanuel; Perrotta Berlin, Maria - 2009

Despite a voluminous literature on the topic, the question of whether foreign aid leads to growth is still controversial. To observe the pure effect of aid, researchers used instruments that must be exogenous to growth and explain well aid flows. This paper argues that instruments used in the...

Persistent link: https://www.econbiz.de/10012110638

Where did all the remittances go? Understanding the impact of remittances on consumption patterns in rural China

Zhu, Yu; Wu, Zhongmin; Peng, Liquan; Sheng, Laiyun - 2009

We focus on the impact of migrants' remittances on consumption patterns in rural China, allowing for endogeneity of remittances and county fixed-effects. We find that the marginal propensity to consume out of remittances is close to unity, which is far greater than that out of non-migrant...

Persistent link: https://www.econbiz.de/10010277829

Do migrants really save more? Understanding the impact of remittances on savings in rural China

Zhu, Yu; Wu, Zhongmin; Wang, Meiyan; Du, Yang; Cai, Fang - 2009

This paper studies the impact of remittances on the savings behaviour of rural households in China, using a cross-sectional survey. Allowing for endogeneity and left-censoring of remittances, we find that the marginal propensity to save out of remittances is well below half of that out of other...

Persistent link: https://www.econbiz.de/10010277831

How well do individuals predict the selling prices of their homes?

Benítez-Silva, Hugo; Eren, Selcuk; Heiland, Frank; … - 2009

Self-reported home values are widely used as a measure of housing wealth by researchers; the accuracy of this measure, however, is an open empirical question, and requires some type of market assessment of the values reported. In this study, the authors examine the predictive power of...

Persistent link: https://www.econbiz.de/10010281729

Parsimonious estimation with many instruments

Groen, Jan J. J.; Kapetanios, George - 2009

We suggest a way to perform parsimonious instrumental variables estimation in the presence of many, and potentially … variables complies with a factor structure. In this sense, our method is equivalent to instrumental variables estimation that is … dominates standard instrumental variables estimation, regardless of whether the factor relationship underlying the set of …

Persistent link: https://www.econbiz.de/10010287075

IV models of ordered choice

Chesher, Andrew; Smolinski, Konrad - 2009

This paper studies single equation instrumental variable models of ordered choice in which explanatory variables may be endogenous. The models are weakly restrictive, leaving unspecified the mechanism that generates endogenous variables. These incomplete models are set, not point, identifying...

Persistent link: https://www.econbiz.de/10010288410

Uniform confidence bands for functions estimated nonparametrically with instrumental variables

Horowitz, Joel L.; Lee, Sokbae - 2009

instrumental variables. We show that a sieve nonparametric instrumental variables estimator is pointwise asymptotically normally …

Persistent link: https://www.econbiz.de/10010288414

Identification region of the potential outcome distributions under instrument independence

Kitagawa, Toru - 2009

This paper examines identification power of the instrument exogeneity assumption in the treatment effect model. We derive the identification region: The set of potential outcome distributions that are compatible with data and the model restriction. The model restrictions whose identifying power...

Persistent link: https://www.econbiz.de/10010288420

Single equation endogenous binary response models

Chesher, Andrew - 2009

and exogenous explanatory variables. Identified sets can be large unless instrumental variables have substantial …

Persistent link: https://www.econbiz.de/10010288426