We develop an “omitted variable bias” framework for sensitivity analysis of instrumental variable (IV) estimates that is immune to “weak instruments,” naturally handles multiple “side-effects” (violations of the exclusion restriction assumption) and “confounders” (violations of...

Corruption is generally regarded as a key obstacle for economic growth, and the endogeneity between corruption and economic performance is difficult to address in empirical studies. The impact of corruption on regional economic growth is examined in this research using Chinese province panel...

Instrumental variables (IV) are often used to provide exogenous variation in the impulse response analysis but the heterogeneous effects the IV may identify are rarely discussed. In microeconometrics, on the other hand, it is well understood that an IV identifies the local average treatment...

Energy poverty is a widespread issue that prevents billions of people from accessing affordable, modern, and eco-friendly energy services. Across the globe, per capita energy consumption varies by more than tenfold, making poorer households more vulnerable to energy poverty. Therefore, income...

We extend the popular bias-based test of Stock and Yogo (2005) for instrument strength in linear instrumental variables regressions with multiple endogenous regressors to be robust to heteroskedasticity and autocorrelation. Equivalently, we extend the robust test of Montiel Olea and Pflueger...