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Binary response model with many weak instruments

Dakyung Seong

arXiv 13 Jan 2022 · Econometrics · publishedJournal of Applied Econometrics (2025)

arXiv:2201.04811 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper considers an endogenous binary response model with many weak instruments. We employ a control function approach and a regularization scheme to obtain better estimation results for the endogenous binary response model in the presence of many weak instruments. Two consistent and asymptotically normally distributed estimators are provided, each of which is called a regularized conditional maximum likelihood estimator (RCMLE) and a regularized nonlinear least squares estimator (RNLSE). Monte Carlo simulations show that the proposed estimators outperform the existing ones when there are many weak instruments. We use the proposed estimation method to examine the effect of family income on college completion.

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229
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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
1Carrasco, M. and G. Tchuente (2016) Efficient estimation with many weak instruments using regularization techniques1.000134100%
2Bastian, J. and K. Michelmore (2018) The long-term impact of the earned income tax credit on children's education and employment outcomes1.000133100%
3Hansen, C. and D. Kozbur (2014) Instrumental variables estimation with many weak instruments using regularized JIVE1.000103100%
4Frazier, D. T., E. Renault, L. Zhang, and X. Zhao (2020) Weak identification in discrete choice models1.00084100%
5Carrasco, M. and G. Tchuente (2015) Regularized LIML for many instruments1.00074100%
6Belloni, A., D. Chen, V. Chernozhukov, and C. Hansen (2012) Sparse models and methods for optimal instruments with an application to eminent domain1.00054100%
7Rivers, D. and Q. H. Vuong (1988) Limited information estimators and exogeneity tests for simultaneous probit models0.98523696%
8Benatia, D., M. Carrasco, and J.-P. Florens (2017) Functional linear regression with functional response0.9568488%
9Staiger, D. and J. H. Stock (1997) Instrumental variables regression with weak instruments0.92843100%
10Seong, D. and W.-K. Seo (2023) Functional instrumental variable regression with an application to estimating the impact of immigration on native wages self0.92843100%

Showing the top 10 of 57 scored citations.