Riquelme, Andres; Berkowitz, Daniel; Caner, Mehmet - In: Stata Journal 13 (2013) 3, pp. 528-546
There is a growing consensus that it is difficult to pick instruments that perfectly satisfy the exclusion restriction. Drawing on results from Berkowitz, Caner, and Fang (2012, Journal of Econometrics 166: 255–266), we provide in this article a nontechnical summary of how valid inferences can...