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Higher Order Expansions in the Weak Instrument Case

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Author Info
Gustavo Suarez
Marcelo J. Moreira
Jack R. Porter

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Abstract

We provide an argument for the limitation of Edgeworth expansions to many commonly used statistics in the weak instrument framework. However, we show that Edgeworth expansions hold for approximately similar tests regardless of the identification conditions. Finally, we consider simulation techniques to adjust the size of these tests.

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Publisher Info
Paper provided by Econometric Society in its series Econometric Society 2004 North American Winter Meetings with number 638.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:nawm04:638

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Related research
Keywords: weak instruments; edgeworth expansions;

Find related papers by JEL classification:
C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Hypothesis Testing
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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