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Partly Linear Instrumental Variables Regressions without Smoothing on the Instruments

Jean-Pierre Florens, Elia Lapenta

arXiv 21 Dec 2022 · Econometrics · publishedTest (2024) · 1 citations (OpenAlex)

arXiv:2212.11012 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We consider a semiparametric partly linear model identified by instrumental variables. We propose an estimation method that does not smooth on the instruments and we extend the Landweber-Fridman regularization scheme to the estimation of this semiparametric model. We then show the asymptotic normality of the parametric estimator and obtain the convergence rate for the nonparametric estimator. Our estimator that does not smooth on the instruments coincides with a typical estimator that does smooth on the instruments but keeps the respective bandwidth fixed as the sample size increases. We propose a data driven method for the selection of the regularization parameter, and in a simulation study we show the attractive performance of our estimators.

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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., J.-P. Florens, and E. Renault (2007) Chapter 77 Linear Inverse Problems in Structural Econometrics Estimation Based on Spectral Decomposition and Regularization, in self1.000134100%
2Kress, R (2012) Linear Integral Equations1.000104100%
3Darolles, S., Y. Fan, J. P. Florens, and E. Renault (2011) Nonparametric Instrumental Regression1.00095100%
4Florens, J.-P., J. Johannes, and S. V. Bellegem (2012) Instrumental regression in partially linear models self1.00094100%
5Hall, P. and J. L. Horowitz (2005) Nonparametric methods for inference in the presence of instrumental variables0.84333100%
6Chen, Q (2021) Robust and optimal estimation for partially linear instrumental variables models with partial identification0.81142100%
7Escanciano, J. C (2018) A simple and robust estimator for linear regression models with strictly exogenous instruments0.81142100%
8Lavergne, P. and V. Patilea (2013) Smooth minimum distance estimation and testing with conditional estimating equations: Uniform in bandwidth theory0.81142100%
9Newey, W. K. and J. L. Powell (2003) Instrumental variable estimation of nonparametric models0.81142100%
10Bierens, H. J (2017) Econometric Model Specification0.64441100%

Showing the top 10 of 32 scored citations.