Search Results - subject:"Instrumental variables estimation"

Identification and Estimation of 'Irregular' Correlated Random Coefficient Models

Graham, Bryan S. - 2010

In this paper we study identification and estimation of a correlated random coefficients (CRC) panel data model. The outcome of interest varies linearly with a vector of endogenous regressors. The coefficients on these regressors are heterogenous across units and may covary with them. We...

Persistent link: https://www.econbiz.de/10012758200

The Distribution of the Instrumental Variables Estimator and its T-Ratiowhen the Instrument is a Poor One

Nelson, Charles R. - 2010

When the instrumental variable is a poor one, in the sense of being weakly correlated with the variable it proxies, the small sample distribution of the IV estimator is concentrated around a value that is inversely related to the feedback in the system and which is often further from the true...

Persistent link: https://www.econbiz.de/10012760033

Beliefs and Actions in the Trust Game : Creating Instrumental Variables to Estimate the Causal Effect

Costa-Gomes, Miguel A. - 2010

In many economic contexts, an elusive variable of interest is the agent's expectation about relevant events, e.g. about other agents' behavior. Recent experimental studies as well as surveys have asked participants to state their beliefs explicitly, but little is known about the causal relation...

Persistent link: https://www.econbiz.de/10013144460

Erratum : Does Education Improve Health? A Reexamination of the Evidence from Compulsory Schooling Laws

Mazumder, Bhashkar - 2010

In this brief note, I correct a few mistakes in Table 3 of "Does education improve health? A reexamination of the evidence from compulsory schooling laws" published in Economic Perspectives, 2Q, 2008. The corrected results remain consistent with the conclusions of the paper which argued that...

Persistent link: https://www.econbiz.de/10014188771

Estimating the Persistence and the Autocorrelation Function of a Time Series that is Measured with Error

Hansen, Peter Reinhard; Lunde, Asger - 2010

An economic time series can often be viewed as a noisy proxy for an underlying economic variable. Measurement errors will influence the dynamic properties of the observed process and may conceal the persistence of the underlying time series. In this paper we develop instrumental variable (IV)...

Persistent link: https://www.econbiz.de/10014198167

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

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

College Education and Wages in the U.K. : Estimating Conditional Average Structural Functions in Nonadditive Models with Binary Endogenous Variables

Klein, Tobias J. - Tilburg University, Center for Economic Research - 2009

Recent studies debate how the unobserved dependence between the monetary return to college education and selection into college can be characterized. This paper examines this question using British data. We develop a semiparametric local instrumental variables estimator for identified features...

Persistent link: https://www.econbiz.de/10011091030

A Specification Test for Instrumental Variables Regression with Many Instruments

Lee, Yoonseok; Okui, Ryo - Cowles Foundation for Research in Economics, Yale University - 2009

This paper considers specification testing for instrumental variables estimation in the presence of many instruments …

Persistent link: https://www.econbiz.de/10008509394