On the instrument functional form with a binary endogenous explanatory variable

Ruonan Xu

Economics Letters, 2021, vol. 206, issue C

Abstract: I demonstrate that, in a linear regression model with a binary endogenous explanatory variable, a two-step IV estimation procedure could avoid the weak identification issue caused by a first-stage linear projection onto the linear instruments.

Keywords: Weak instruments; Fitted probit probability; F statistic; Heteroskedasticity; Two-stage least squares (search for similar items in EconPapers)
JEL-codes: C10 C26 O18 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176521002706
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:206:y:2021:i:c:s0165176521002706

DOI: 10.1016/j.econlet.2021.109993

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().