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Leniency Designs: An Operator's Manual

Paul Goldsmith-Pinkham, Peter Hull, Michal Kolesár

arXiv 5 Nov 2025 · Econometrics · 2 citations (OpenAlex)

arXiv:2511.03572 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop a step-by-step guide to leniency (a.k.a. judge or examiner instrument) designs, drawing on recent econometric literatures. The unbiased jackknife instrumental variables estimator (UJIVE) is purpose-built for leveraging exogenous leniency variation, avoiding subtle biases even in the presence of many decision-makers or controls. We show how UJIVE can also be used to assess key assumptions underlying leniency designs, including quasi-random assignment and average first-stage monotonicity, and to probe the external validity of treatment effect estimates. We further discuss statistical inference, arguing that non-clustered standard errors are often appropriate. A reanalysis of Farre-Mensa et al. (2020), using quasi-random examiner assignment to estimate the value of patents to startups, illustrates our checklist.

Citation extraction

57
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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
1Farre-Mensa, Joan, Hegde, Deepak, Ljungqvist, Alexander (2020) What Is a Patent Worth? Evidence from the U.S. Patent “Lottery”1.000154100%
2Imbens, Guido W., Angrist, Joshua D (1994) Identification and Estimation of Local Average Treatment Effects0.9619589%
3Frandsen, Brigham, Lefgren, Lars, Leslie, Emily (2023) Judging Judge Fixed Effects0.9416383%
4Kolesár, Michal (2013) Estimation in an Instrumental Variables Model With Treatment Effect Heterogeneity self0.92843100%
5Mikusheva, Anna, Sun, Liyang (2022) Inference with Many Weak Instruments0.81142100%
6Kitagawa, Toru (2015) A Test for Instrument Validity0.81142100%
7Abadie, Alberto (2002) Bootstrap Tests for Distributional Treatment Effects in Instrumental Variable Models0.73732100%
8Bekker, Paul A (1994) Alternative Approximations to the Distributions of Instrumental Variable Estimators0.6936333%
9Yap, Luther (2025) Inference with Many Weak Instruments and Heterogeneity0.64441100%
10Angrist, Joshua, Kolesár, Michal (2024) One Instrument to Rule Them All: The Bias and Coverage of Just-ID IV self0.6443267%

Showing the top 10 of 57 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
1Cluster-Robust Inference for Quadratic Forms0.64422
2A Practical Guide to Instrumental Variables Methods with Heterogeneous Treatment Effects0.64422
3Representativeness and Efficiency in Overidentified IV0.40511
4Inference on the TSLS Estimand with Weak Instruments and Treatment Effect Heterogeneity0.40511