We develop a new specification test for IV estimators adopting a particular second order approximation of Bekker. The new specification test compares the difference of the forward (conventional) 2SLS estimator of the coefficient of the right-hand side endogenous variable with the reverse 2SLS...

This paper estimates the effect of fertility on the labor force participation of married women in Korea. Since Korean households prefer sons to daughters, there is exogenous variation in the number of children among households, depending on their first child's sex. Using this exogenous variation...

The selection model and instrumental variable, local average treatment effect (LATE) framework are widely interpreted as alternative, competing frameworks. This note shows that the assumption of an unobserved index crossing a threshold that defines the selection model is equivalent to the...

This paper derives the asymptotic distribution for a vector of sample autocorrelations of regression residuals from a quite general linear model. The asymptotic distribution forms the basis for a test of the null hypothesis that the regression error follows a moving average of order q...