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An Identification and Dimensionality Robust Test for Instrumental Variables Models

Manu Navjeevan

arXiv 25 Nov 2023 · Econometrics

arXiv:2311.14892 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Using modifications of Lindeberg's interpolation technique, I propose a new identification-robust test for the structural parameter in a heteroskedastic instrumental variables model. While my analysis allows the number of instruments to be much larger than the sample size, it does not require many instruments, making my test applicable in settings that have not been well studied. Instead, the proposed test statistic has a limiting chi-squared distribution so long as an auxiliary parameter can be consistently estimated. This is possible using machine learning methods even when the number of instruments is much larger than the sample size. To improve power, a simple combination with the sup-score statistic of Belloni et al. (2012) is proposed. I point out that first-stage F-statistics calculated on LASSO selected variables may be misleading indicators of identification strength and demonstrate favorable performance of my proposed methods in both empirical data and simulation study.

Citation extraction

53
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171
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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
1Gilchrist, D. S. and E. G. Sands (2016) Something to talk about: Social spillovers in movie consumption1.000163100%
2Belloni, A., D. Chen, V. Chernozhukov, and C. Hansen (2012) Sparse models and methods for optimal instruments with an application to eminent domain1.000135100%
3Matsushita, Y. and T. Otsu (2022) A jackknife lagrange multiplier test with many weak instruments1.000134100%
4Mikusheva, A. and L. Sun (2021, 12) (2021) Inference with many weak instruments1.000134100%
5Kleibergen, F (2005) Testing parameters in gmm without assuming that they are identified1.000124100%
6Angrist, J. D. and A. B. Krueger (1991) Does compulsory school attendance affect schooling and earnings?1.00083100%
7Chernozhukov, V., D. Chetverikov, and K. Kato (2013) Gaussian approximations and multiplier bootstrap for maxima of sums of high-dimensional random vectors1.00074100%
8Kleibergen, F. (2002, 02) (2002) Pivotal statistics for testing structural parameters in instrumental variables regression1.00073100%
9Andrews, I (2016) Conditional linear combination tests for weakly identified models1.00064100%
10Belloni, A., V. Chernozhukov, D. Chetverikov, C. Hansen, and K. Kato (2018) High-dimensional econometrics and regularized gmm1.00064100%

Showing the top 10 of 53 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
1A Dimension-Agnostic Bootstrap Anderson-Rubin Test For Instrumental Variable Regressions0.96194
2An Empirical Comparison of Weak-IV-Robust Procedures in Just-Identified Models0.40511
3Wild Bootstrap Inference for Linear Regressions with Many Covariates0.40511
4An Improved Inference for IV Regressions0.40511
5Robust Inference with High-Dimensional Instruments0.40511