The use of many moment conditions improves the asymptotic efficiency of the instrumental variables estimators. However, in finite samples, the inclusion of an excessive number of moments increases the bias. To solve this problem, we propose regularized versions of the limited information maximum...

This paper studies the asymptotic validity of the regularized Anderson Rubin (AR) tests in linear models with large number of instruments. The regularized AR tests use informationreduction methods to provide robust inference in instrumental variable (IV) estimation for data rich environments. We...

This paper assesses the relationship between courses taken in high school and college major choice. Using High School and Beyond survey data, I study the empirical relationship between college performance and different types of courses taken during high school. I find that students sort into...

In social interaction models, the identification of the network effect is based on either group size variation, structure of the network or the relative position in the network measured by the Bonacich centrality measure. These identification strategies imply the use of many instruments or...

This paper estimates the government spending multiplier for natural resource-rich low-income countries (LICs). Kraay (2014) identification strategy exploits the long lags between approval and eventual disbursement of loans to isolate a predetermined component of public spending associated with...