# Questions tagged [instrumental-variable]

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### What's a classic (paper) example in which OLS gives unreasonable result, but IV estimate gives reasonable result?

I'm wondering are there are any classic papers, especially in the field of labor economics or development economics, that include regression tables showing OLS gives unreasonable result(like ...
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### How to deal with plausibly exogenous instruments?

If you have some reasons to believe that an instrument is plausibly exogenous i.e. it is a weak instrument but it couldn't possibly be endogenous, what is a practical way to make inference?
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### IV combined with matching

I have seen a couple of papers combining DiD with matching. Is there also something similar for IV? Especially given the problems with linear inclusion of covariates in 2SLS, see Blandhol et al. (2022)...
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### is endogeneity a problem in the first-stage regression in a two-stage least square regression?

We have this model: $$D=\alpha_1+\gamma_1 Z + \epsilon_1$$ $$Y=\alpha_2+\gamma_2 D + \epsilon_2$$ Notations are as usual: Y is the outcome, D is the treatment, Z is the instrument Two conditions for ...
• 141
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### Why are my 2SLS estimates much larger than my OLS estimates?

When performing IV regression, it is often taken as a sign of unbiasedness if the IV estimates are similar to the OLS estimates of the same model. My question is: If the estimates are very different,...
1 vote
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### Weak Instrument - Stock and Yogo

I have the following structural equations where $G,Z$ are endogenous and $X,Y$ are exogenous $$G_d=B_0+B_1Z+B_2X+u_1\\ G_s=a_0 +a_1Z+a_2Y+u_2 \\ G_d=G_s$$ Now, I would like to perform 2SLS, thus, ...
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### Some confusions about instrumental variable (econometrics)

As the title says, I have some confusions about instrumental variable. According to my lecture note (which is supposed to be reliable), instrumental variable has two big properties: Validity: an ...
38 views

### Is it reasonable, in panel data, to use past values of explanatory variables as instruments to deal with simultaneous causality?

I am trying to examine the determinants of economic growth, essentially regressing a number of variables upon economic growth. I face a problem that there is likely simultaneous causality between many ...
1 vote
222 views

### Testing for weak instrument

I have 3 endogenous variables in my model and I have identified 3 (or max 4) instruments. I wanted to know appropriate test for identifying whether the instruments are weak or not given that I have ...
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### Confounding versus endogenous variables. What is their relative hierarchical position?

There are valuable resources on the lexicon of types of variables quickly accessible, such as here. However, some of these concepts appear side-by-side often enough to make them confusing. For ...