Reynaert, Mathias; Verboven, Frank - C.E.P.R. Discussion Papers - 2012
coefficient logit model. Based on an extensive Monte Carlo study, we show that the use of Chamberlain's (1987) optimal instruments … overcomes most of the problems that have recently been documented with standard, non-optimal instruments. Optimal instruments … only successful in terms of bias and efficiency when combined with optimal instruments. …