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Interpreting TSLS Estimators in Information Provision Experiments

Vod Vilfort, Whitney Zhang

arXiv 9 Sep 2023 · Econometrics · publishedAmerican Economic Review Insights (2025)

arXiv:2309.04793 · PDF · DOI · OpenAlex · Extracted main text

Abstract

To estimate the causal effects of beliefs on actions, researchers often run information provision experiments. We consider the causal interpretation of two-stage least squares (TSLS) estimators in these experiments. We characterize common TSLS estimators as weighted averages of causal effects, and interpret these weights under general belief updating conditions that nest parametric models from the literature. Our framework accommodates TSLS estimators for both passive and active control designs. Notably, we find that some passive control estimators allow for negative weights, which compromises their causal interpretation. We give practical guidance on such issues, and illustrate our results in two empirical applications.

Citation extraction

45
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in-text mentions
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appendix boundary found by appendix_titled_section at “Appendix” · 52% of the source is main text. Read the extracted text to check this.

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. D., Graddy, K., and Imbens, G. W (2000) The interpretation of instrumental variables estimators in simultaneous equations models with an application to the demand for f…1.00054100%
2Blandhol, C., Bonney, J., Mogstad, M., and Torgovitsky, A (2022) When is tsls actually late?1.00053100%
3Balla-Elliott, D (2023) Identifying causal effects in information provision experiments0.9568488%
4Haaland, I., Roth, C., and Wohlfart, J (2023) Designing information provision experiments0.9209578%
5Jäger, S., Roth, C., Roussille, N., and Schoefer, B (2024) Worker beliefs about outside options0.88820570%
6Kumar, S., Gorodnichenko, Y., and Coibion, O (2023) The effect of macroeconomic uncertainty on firm decisions0.87415667%
7Coibion, O., Gorodnichenko, Y., and Weber, M (2022) Monetary policy communications and their effects on household inflation expectations0.8434475%
8Deshpande, M. and Dizon-Ross, R (2023) The (lack of) anticipatory effects of the social safety net on human capital investment0.8434475%
9Roth, C. and Wohlfart, J (2020) How do expectations about the macroeconomy affect personal expectations and behavior?0.8434375%
10Cullen, Z. and Perez-Truglia, R (2022) How much does your boss make? the effects of salary comparisons0.84310560%

Showing the top 10 of 45 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
1Identifying Causal Effects in Information Provision Experiments0.63085