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| Richard A Dunn |
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| ''Consistently bounding parameter values with one instrument and two endogenous explanatory variables'' |
| ( 2012, Vol. 32 No.2 ) |
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| The current paper considers a linear regression framework with two endogenous regressors, but only one instrument that is correlated with both. I demonstrate that under reasonable conditions, some of which are testable from the data, these different sources of endogeneity act in opposing directions and hence IV regression can generate economically meaningful bounds. |
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| Keywords: endogeneity, instrumental variables, bounding, under-identification |
JEL: C1 - Econometric and Statistical Methods: General
C2 - Single Equation Models; Single Variables: General |
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| Manuscript Received : Nov 17 2011 | | Manuscript Accepted : Apr 01 2012 |
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