All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Richard A Dunn
''Consistently bounding parameter values with one instrument and two endogenous explanatory variables''
( 2012, Vol. 32 No.2 )
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.
Keywords: endogeneity, instrumental variables, bounding, under-identification
JEL: C1 - Econometric and Statistical Methods: General
C2 - Single Equation Models; Single Variables: General
Manuscript Received : Nov 17 2011 Manuscript Accepted : Apr 01 2012

  This abstract has been downloaded 1477 times                The Full PDF of this paper has been downloaded 153558 times