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Nonparametric Instrumental Variables Estimation Under Misspecification

Ben Deaner

arXiv 4 Jan 2019 · Econometrics · 2 citations (OpenAlex)

arXiv:1901.01241 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Nonparametric Instrumental Variables (NPIV) analysis is based on a conditional moment restriction. We show that if this moment condition is even slightly misspecified, say because instruments are not quite valid, then NPIV estimates can be subject to substantial asymptotic error and the identified set under a relaxed moment condition may be large. Imposing strong a priori smoothness restrictions mitigates the problem but induces bias if the restrictions are too strong. In order to manage this trade-off we develop a methods for empirical sensitivity analysis and apply them to the consumer demand data previously analyzed in Blundell (2007) and Horowitz (2011).

Citation extraction

39
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120
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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
1Blundell, Richard, Chen, Xiaohong, & Kristensen, Dennis (2007) Semi-nonparametric IV estimation of shape-invariant Engel curves1.000124100%
2Newey, Whitney K., & Powell, James L (2003) Instrumental Variable Estimation of Nonparametric Models0.87462100%
3Horowitz, Joel L (2011) Applied nonparametric instrumental variables estimation0.84728461%
4Chen, Xiaohong, & Christensen, Timothy M (2018) Optimal sup-norm rates and uniform inference on nonlinear functionals of nonparametric IV regression0.8434375%
5Darolles, Serge, Fan, Yanqin, Florens, Jean-Pierre, & Renault, Eric (2011) Nonparametric Instrumental Regression0.8435360%
6Ai, Chunrong, & Chen, Xiaohong (2003) Efficient estimation of models with conditional moment restrictions containing unknown functions0.81142100%
7Masten, Matthew A., & Poirier, Alexandre (2018) Identification of Treatment Effects under Conditional Partial Independence0.81142100%
8Kress, Rainer (2014) Linear Integral Equations0.6445240%
9Altonji, Joseph G., Elder, Todd E., & Taber, Christopher R (2005) Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools0.64422100%
10Hall, Peter, & Horowitz, Joel L (2005) Nonparametric methods for inference in the presence of instrumental variables0.64422100%

Showing the top 10 of 39 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Inference on Strongly Identified Functionals of Weakly Identified Functions0.40511