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A Distance Covariance-based Estimator

Emmanuel Selorm Tsyawo, Abdul-Nasah Soale

arXiv 13 Feb 2021 · Econometrics · 2 citations (OpenAlex)

arXiv:2102.07008 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper introduces an estimator that significantly weakens the relevance condition of conventional instrumental variable (IV) methods, allowing endogenous covariates to be weakly correlated, uncorrelated, or even mean-independent, though not independent of instruments. As a result, the estimator can exploit the maximum number of relevant instruments in any given empirical setting. Identification is feasible without excludability, and the disturbance term does not need to possess finite moments. Identification is achieved under a weak conditional median independence condition on pairwise differences in disturbances, along with mild regularity conditions. Furthermore, the estimator is shown to be consistent and asymptotically normal. The relevance condition required for identification is shown to be testable.

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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
1Székely, Gábor J, Rizzo, Maria L, Bakirov, Nail K (2007) Measuring and testing dependence by correlation of distances1.000124100%
2Powell, James L (1991) Estimation of monotonic regression models under quantile restrictions1.00083100%
3Tsyawo, Emmanuel Selorm (2023) Feasible IV regression without excluded instruments self1.00064100%
4Oberhofer, Walter, Haupt, Harry (2016) Asymptotic theory for nonlinear quantile regression under weak dependence1.00053100%
5Torgovitsky, Alexander (2017) Minimum distance from independence estimation of nonseparable instrumental variables models0.87452100%
6Escanciano, J Carlos (2006) A consistent diagnostic test for regression models using projections0.8434475%
7Székely, Gábor J, Rizzo, Maria L (2014) Partial distance correlation with methods for dissimilarities0.8434375%
8Domínguez, Manuel A, Lobato, Ignacio N (2004) Consistent estimation of models defined by conditional moment restrictions0.8435460%
9Escanciano, Juan Carlos (2018) A simple and robust estimator for linear regression models with strictly exogenous instruments0.84333100%
10Davis, Richard A, Matsui, Muneya, Mikosch, Thomas, Wan, Phyllis (2018) Applications of distance correlation to time series0.73732100%

Showing the top 10 of 79 scored citations.