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We derive a new matrix statistic for the Hausman test for endogeneity in cross-sectional Instrumental Variables … statistic from the augmented regression setup that is often used for the endogeneity test, and we find that the choice between … situations. We find that the test statistic performs well as regards empirical size in almost all cases; however, as regards …
Persistent link: https://www.econbiz.de/10014507912
endogeneity and attrition/non-response bias, using two instrumental variables. Making use of a discrete instrument for the … as the total population and suggest non- and semiparametric estimators. We apply the latter to a randomized experiment at …
Persistent link: https://www.econbiz.de/10011348296
Randomized control trials are often considered the gold standard to establish causality. However, in many policy-relevant situations, these trials are not possible. Instrumental variables affect the outcome only via a specific treatment; as such, they allow for the estimation of a causal effect....
Persistent link: https://www.econbiz.de/10011449458
. This is done with randomly assigned lottery numbers, nonlottery tie-breakers like test scores, or both. The New York City … public high school match illustrates the latter, using test scores, grades, and interviews to rank applicants to screened …
Persistent link: https://www.econbiz.de/10011989205
Since identification, instrumental variables and variables exclusion, core concepts in econometrics, are entwined, several questions arise: How is identification related to the existence of IVs? How are identification criteria related to omitted variables? Is omission/inclusion of variables from...
Persistent link: https://www.econbiz.de/10011779245
experiment has been affected by randomisation per se. We illustrate how this has happened in the case of the UK Employment … Retention and Advancement (ERA) experiment, in which over one quarter of the eligible population was not represented. Our … part remains testable under the experiment even in the presence of randomisation bias, and offers a way to correct the non …
Persistent link: https://www.econbiz.de/10009769298
individuals might react to the randomisation itself, thereby rendering the causal inference from the experiment irrelevant for …", and provide what is to our knowledge the first empirical evidence on this form of bias in an actual social experiment, the … UK Employment Retention and Advancement (ERA) study. Specifically, we empirically test the extent to which random …
Persistent link: https://www.econbiz.de/10010356798
model averaging as a statistical decision problem in a limit experiment, and derive an averaging scheme that is Bayes …
Persistent link: https://www.econbiz.de/10011309717
It is standard practice in applied work to study the effect of a binary variable ("treatment") on an outcome of interest using linear models with additive effects. In this paper I study the interpretation of the ordinary and two-stage least squares estimands in such models when treatment effects...
Persistent link: https://www.econbiz.de/10011924924
potential outcomes, namely that potential outcomes are mutually stochastically increasing. We show how to test the empirical …
Persistent link: https://www.econbiz.de/10012432832