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Weak Identification with Many Instruments

Anna Mikusheva, Liyang Sun

arXiv 18 Aug 2023 · Econometrics · publishedEconometrics Journal (2024) · 8 citations (OpenAlex)

arXiv:2308.09535 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Linear instrumental variable regressions are widely used to estimate causal effects. Many instruments arise from the use of “technical” instruments and more recently from the empirical strategy of “judge design”. This paper surveys and summarizes ideas from recent literature on estimation and statistical inferences with many instruments for a single endogenous regressor. We discuss how to assess the strength of the instruments and how to conduct weak identification-robust inference under heteroskedasticity. We establish new results for a jack-knifed version of the Lagrange Multiplier (LM) test statistic. Furthermore, we extend the weak-identification-robust tests to settings with both many exogenous regressors and many instruments. We propose a test that properly partials out many exogenous regressors while preserving the re-centering property of the jack-knife. The proposed tests have correct size and good power properties.

Citation extraction

49
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117
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distinct cited
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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
1Angrist, J. and A. Krueger (1991) Does compulsory school attendance affect schooling and earnings?1.000164100%
2Mikusheva, A. and L. Sun (2022) Inference with Many Weak Instruments self0.86517465%
3Angrist, J. D. and B. Frandsen (2022) Machine labor0.84333100%
4Staiger, D. and J. Stock (1997) Instrumental variables regression with weak instruments0.81142100%
5Bekker, P. A (1994) Alternative Approximations to the Distributions of Instrumental Variable Estimators0.81142100%
6Hausman, J. A., W. K. Newey, T. Woutersen, J. C. Chao, and N. R. Swa… (2012) Instrumental variable estimation with heteroskedasticity and many instruments0.81142100%
7Matsushita, Y. and T. Otsu (2022) A jackknife lagrange multiplier test with many weak instruments0.81142100%
8Hansen, C., J. Hausman, and W. Newey (2008) Estimation With Many Instrumental Variables0.73732100%
9Kolesar, M (2013) Estimation in an instrumental variables model with treatment effect heterogeneity0.73732100%
10Chao, J. C., N. R. Swanson, and T. Woutersen (2023) Jackknife Estimation of a Cluster-Sample IV Regression Model with Many Weak Instruments0.64441100%

Showing the top 10 of 49 scored citations.

Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Jackknife Instrumental Variable Inference0.64422
2Dynamic Biases of Static Panel Data Estimators0.51121
3When Should We (Not) Interpret Linear IV Estimands as LATE?0.40511
4Identification-robust inference for the LATE with high-dimensional covariates0.40511
5Enhanced power enhancements for testing many moment equalities: Beyond the $2$- and $$-norm0.40511
6A Dimension-Agnostic Bootstrap Anderson-Rubin Test For Instrumental Variable Regressions0.40511
7An Improved Inference for IV Regressions0.40511
8Cluster-Robust Inference for Quadratic Forms0.40511
9A Practical Guide to Instrumental Variables Methods with Heterogeneous Treatment Effects0.40511