When evaluating partial effects, it is important to distinguish between structural endogeneity and measurement errors. In contrast to linear models, these two sources of endogeneity affect partial effects differently in nonlinear models. We study this issue focusing on the Instrumental Variable...

Many studies in economics use instruments or treatments which combine a set of exogenous shocks with other predetermined variables by a known formula. Examples include shift-share instruments and measures of social or spatial spillovers. We review recent econometric tools for this setting, which...

This study re-examines the effects of monetary policy using Japanese data and a new approach, the shift-share regressor and instrumental variables, which has not been used in previous vector autoregression analyses. We find that consumption and investment respond negatively to interest rates,...

We consider instrumental variables estimation of a possibly infinite order dynamic panel autoregressive (AR) process with individual effects. The estimation is based on the sieve AR approximation with its lag order increasing with sample size. Transforming the variable to eliminate individual...

The causal effects of fertility are a central focus in the social sciences, but the analysis is challenged by the endogeneity of fertility choices. Earlier work has proposed several “natural experiments” from twin births or gender composition of earlier births to assess whether having more...

Although the incidence of conflicts between Fulani nomadic pastoralists and sedentary farmers in Nigeria have risen significantly during the last decade, no study has, to the best of my knowledge, examined how these conflicts influence distrust of members of the Fulani ethnic group and the...

A sound understanding of the potency of tobacco control policies is key to tobacco prevention. This study exploits a Smoothed Instrumental Variables Quantile Regression estimator to gauge the effectiveness of these policies while addressing major methodological and data limitations plaguing the...

Employment is considered a significant determinant of living standards around the globe. For most people, work is the primary source of income, and job-related events and shocks are common causes for individuals and households to escape from poverty or fall into it. Along with employment, it is...

Competition in the U.S. appears to have declined. One contributing factor may have been heterogeneity in the availability of credit during the financial crisis. I examine the impact of product market peer credit constraints on long-run competitive outcomes and behavior among non-financial firms....

This paper presents novel methodological and empirical contributions to the child penalty literature. We propose a new estimator that combines elements from standard event study and instrumental variable estimators and demonstrate their relatedness. Our analysis shows that all three approaches...