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Post-Selection and Post-Regularization Inference in Linear Models with Many Controls and Instruments

Victor Chernozhukov, Christian Hansen, Martin Spindler

arXiv 13 Jan 2015 · Statistics — Applications · publishedAmerican Economic Review (2015) · 208 citations (OpenAlex)

arXiv:1501.03185 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In this note, we offer an approach to estimating causal/structural parameters in the presence of many instruments and controls based on methods for estimating sparse high-dimensional models. We use these high-dimensional methods to select both which instruments and which control variables to use. The approach we take extends BCCH2012, which covers selection of instruments for IV models with a small number of controls, and extends BCH2014, which covers selection of controls in models where the variable of interest is exogenous conditional on observables, to accommodate both a large number of controls and a large number of instruments. We illustrate the approach with a simulation and an empirical example. Technical supporting material is available in a supplementary online appendix.

Citation extraction

12
references
22
in-text mentions
12
distinct cited
1
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3,177
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Belloni, Chen, Chernozhukov \ Hansen (2012) `Sparse Models and Methods for Optimal Instruments with an Application to Eminent Domain', Econometrica 80, 2369–2429 self0.92843100%
2Belloni, Chernozhukov \ Hansen (2014) `Inference on Treatment Effects After Selection Amongst High-Dimensional Controls', Review of Economic Studies 81, 608–6500.84333100%
3Belloni, Chernozhukov, Fernández-Val \ Hansen (2013) `Program Evaluation with High-Dimensional Data', arXiv:1311.26450.73732100%
4Berry, Levinsohn \ Pakes (1995) `Automobile Prices in Market Equilibrium', Econometrica 63, 841–8900.64441100%
5Belloni \ Chernozhukov (2013) `Least Squares After Model Selection in High-dimensional Sparse Models', Bernoulli 19(2), 521–5470.40511100%
6Belloni, Chernozhukov \ Hansen (2010) `Inference for High-Dimensional Sparse Econometric Models', Advances in Economics and Econometrics0.40511100%
7Belloni, Chernozhukov, Hansen \ Kozbur (2014) `Inference in High Dimensional Panel Models with an Application to Gun Control', arXiv:1411.65070.40511100%
8Gillen, Shum \ Moon (2014) `Demand Estimation with High-Dimensional Product Charateristics', Advances in Econometrics0.40511100%
9Bai \ Ng (2009) `Selecting Instrumental Variables in a Data Rich Environment', Journal of Time Series Econometrics 1(1)0.40511100%
10Belloni, Chernozhukov \ Hansen (2010) LASSO Methods for Gaussian Instrumental Variables Models0.40511100%

Showing the top 10 of 12 scored citations.

Cited by, within the corpus

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1Treatment Effects Inference with High-Dimensional Instruments and Control Variables1.00084
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5A Locally Robust Semiparametric Approach to Examiner IV Designs0.51121
6Complete Subset Averaging with Many Instruments0.40511
7When Should We (Not) Interpret Linear IV Estimands as LATE?0.40511
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