Microeconomic data often have within-cluster dependence. This dependence affects standard error estimation and inference in regression models, including the instrumental variables model. Standard corrections assume that the number of clusters is large, but when this is not the case, Wald and...

We present a minimum distance approach for conducting hypothesis testing in the presence of potentially weak instruments. Under this approach, we propose size-correct tests for limited dependent variable models with endogenous explanatory variables such as endogenous tobit and probit models....

The optimality of supply interventions for addictive drugs is a function of demand responses to price, enforcement costs, and the relative size of external costs. Researchers need credible estimates of demand responses, but most research designs use price series affected by law enforcement...

Since 1997, states have begun to make criminal history records publicly available over the Internet. This paper exploits this previously unexamined variation to identify the effect of expanded employer access to criminal history data on the labor market outcomes of ex-offenders and...

One-third of children in the United States are born to unmarried parents. A substantial number of black and Hispanic children live with a never-married mother. Children of never-married mothers are more likely to drop out of high school, repeat grades, and have behavioral problems than are...

In this paper, we examine the distributional effects of tax evasion, using results from theoretical, experimental, empirical, and especially the general equilibrium literatures on tax evasion. Much, if not all, of this evidence concludes that the main beneficiaries of successful tax evasion are...

Never-married motherhood is associated with worse educational outcomes for children. But this association may reflect other factors that also determine family structure, rather than causal effects. We use incarceration rates for men as instrumental variables in estimating the effect of...