Breusch, Trevor; Ward, Michael B; Nguyen, Hoa; Kompas, Tom - Volkswirtschaftliche Fakultät, … - 2010
This paper analyses the properties of the fixed-effects vector decomposition estimator, an emerging and popular … show that the three-stage procedure of this decomposition is equivalent to a standard instrumental variables approach, for … decomposition estimator, unless the endogeneity problem is known to be small or no relevant instruments exist. …