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Dealing with endogenous regressors is a central challenge of applied research. The standard solution is to use instrumental variables that are assumed to be uncorrelated with unobservables. We instead assume (i) the correlation between the instrument and the error term has the same sign as the...
Persistent link: https://www.econbiz.de/10012464213
Advances in the study of partial identification allow applied researchers to learn about parameters of interest without making assumptions needed to guarantee point identification. We discuss the roles that assumptions and data play in partial identification analysis, with the goal of providing...
Persistent link: https://www.econbiz.de/10012457028