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Inference with Many Weak Instruments

Anna Mikusheva, Liyang Sun

arXiv 26 Apr 2020 · Econometrics · publishedThe Review of Economic Studies (2021) · 46 citations (OpenAlex)

arXiv:2004.12445 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop a concept of weak identification in linear IV models in which the number of instruments can grow at the same rate or slower than the sample size. We propose a jackknifed version of the classical weak identification-robust Anderson-Rubin (AR) test statistic. Large-sample inference based on the jackknifed AR is valid under heteroscedasticity and weak identification. The feasible version of this statistic uses a novel variance estimator. The test has uniformly correct size and good power properties. We also develop a pre-test for weak identification that is related to the size property of a Wald test based on the Jackknife Instrumental Variable Estimator (JIVE). This new pre-test is valid under heteroscedasticity and with many instruments.

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Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Valid Wald Inference with Many Weak Instruments1.000174
2Inference in clustered IV models with many and weak instruments1.000134
3An Identification-and Dimensionality-Robust Test for Instrumental Variables Models1.000134
4Conditional likelihood ratio test with many weak instruments1.00074
5Enhanced power enhancements for testing many moment equalities: Beyond the $2$- and $$-norm1.00064
6Inference on LATEs with covariates1.00053
7A Dimension-Agnostic Bootstrap Anderson-Rubin Test For Instrumental Variable Regressions0.976147
8Jackknife Instrumental Variable Inference0.874102
9Inference with Many Weak Instruments and Heterogeneity0.87462
10A specification test for the strength of instrumental variables0.87452