We propose a Bayesian nonparametric instrumental variable approach that allows us to correct for endogeneity bias in …

method additionally allows for other forms of cross-sectional heterogeneity. We consider a two-group approach for the model … Dirichlet process (DP) mixture of multivariate normals (other cross-sectional heterogeneity). We develop our approach for … continuous heterogeneity leads to an improved in-sample and out-of-sample performance and interesting insights. These findings …