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Instrumental Variables: An Econometrician's Perspective

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  • Imbens, Guido W.

    ()
    (Stanford University)

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    Abstract

    I review recent work in the statistics literature on instrumental variables methods from an econometrics perspective. I discuss some of the older, economic, applications including supply and demand models and relate them to the recent applications in settings of randomized experiments with noncompliance. I discuss the assumptions underlying instrumental variables methods and in what settings these may be plausible. By providing context to the current applications a better understanding of the applicability of these methods may arise.

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    File URL: http://ftp.iza.org/dp8048.pdf
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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8048.

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    Length: 75 pages
    Date of creation: Mar 2014
    Date of revision:
    Handle: RePEc:iza:izadps:dp8048

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    Related research

    Keywords: simultaneous equations models; randomized experiments; potential outcomes; noncompliance; selection models; instrumental variables;

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