Ward, Michael B.; Breusch, Trevor; Nguyen, Hoa Thi Minh; … - Department of Econometrics and Business Statistics, … - 2011
Fixed effects vector decomposition (FEVD) is simply an instrumental variables (IV) estimator with a particular choice of instruments and a special case of the well-known Hausman-Taylor IV procedure. Plümper and Troeger (PT) now acknowledge this point and disown the three-stage procedure that...
