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On the Effect of Imputation on the 2SLS Variance

Helmut Farbmacher, Alexander Kann

arXiv 26 Mar 2019 · Econometrics

arXiv:1903.11004 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Endogeneity and missing data are common issues in empirical research. We investigate how both jointly affect inference on causal parameters. Conventional methods to estimate the variance, which treat the imputed data as if it was observed in the first place, are not reliable. We derive the asymptotic variance and propose a heteroskedasticity robust variance estimator for two-stage least squares which accounts for the imputation. Monte Carlo simulations support our theoretical findings.

Citation extraction

9
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12
in-text mentions
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distinct cited
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main-text words

appendix boundary found by appendix_titled_section at “Appendix” · 53% of the source is main text. Read the extracted text to check this.

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
1McDonough IK, Millimet DL (2017) Missing data, imputation, and endogeneity0.84333100%
2Wooldridge JM (2007) Inverse probability weighted estimation for general missing data problems0.51121100%
3Nagar AL (1959) The Bias and Moment Matrix of the General k-Class Estimators of the Parameters in Simultaneous Equations0.40511100%
4Chao JC, Hausman JA, Newey WK, Swanson NR, Woutersen T (2014) Testing overidentifying restrictions with many instruments and heteroskedasticity0.40511100%
5Chaudhuri S, Frazier DT, Ranault E (2018) Indirect Inference with endogenously missing exogenous variables0.40511100%
6Graham BS, Pinto C, Egel D (2012) Inverse Probability Tilting for Moment Condition Models with Missing Data0.40511100%
7Hausman JA, Newey WK, Woutersen T, Chao JC, Swanson NR (2012) Instrumental variable estimation with heteroskedasticity and many instruments0.40511100%
8Little RJA (1992) Regression With Missing X's: A Review0.40511100%
9Murphy KM, Topel RH (1985) Estimation and Inference in Two-Step Econometric Models0.40511100%

Showing the top 9 of 9 scored citations.