I saw this identification method is used in several working papers but to me it is impossible to understand how it works by simply reading them. I have searched many books and lecture notes in order to read something about it but I found either nothing clear or nothing at all.

Does anyone know what is the sense of this methodology and how it helps in the identification process?

Thanks a lot in advance

  • $\begingroup$ "several working papers" Which? And consider including an example from one of them so you can talk about specific aspects that you find unclear. $\endgroup$ – Brythan Aug 20 '18 at 9:56

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