Practical Considerations for Questionable IVs

Damian Clarke and Benjamín Matta

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines a number of techniques which allow for the construction of bounds estimates based on instrumental variables (IVs), even when the instruments are not valid. The plausexog and imperfectiv commands are introduced, which implement methods described by Conley et al. (2012) and Nevo and Rosen (2012b) in Stata. The performance of these bounds under a range of circumstances is examined, leading to a number of practical results related to the informativeness of the bounds in different circumstances.

Keywords: IV; instrumental variables; exclusion restrictions; invalidity; plausibly exogenous; imperfect IVs (search for similar items in EconPapers)
JEL-codes: C01 C1 C10 C18 C36 C63 (search for similar items in EconPapers)
Date: 2017-06
New Economics Papers: this item is included in nep-ecm
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Citations: View citations in EconPapers (9)

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Journal Article: Practical considerations for questionable IVs (2018)
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