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Many (Weak) Judges in Judge-Leniency Designs

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  • Jochmans, Koen

Abstract

Judge-lenciency designs are very popular. Evaluating whether conventional inference procedures apply to it is not immediate. We frame such designs as an inference problem from grouped data in a setting with a growing number of groups and limited variation between groups. Such an asymptotic approximation is well suited for the data sets encountered in practice. The two-stage least-squares estimator should never be used. The jackknife instrumental-variable estimator can present a reliable tool for inference, provided that a non-standard asymptotic-variance estimator is used along with it. Conventional decision rules to gauge instrument strength are typically not valid in our setting. An alternative such decision rule is provided and is found to perform well.

Suggested Citation

  • Jochmans, Koen, 2023. "Many (Weak) Judges in Judge-Leniency Designs," TSE Working Papers 23-1481, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:128619
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    References listed on IDEAS

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    More about this item

    Keywords

    bias; examiner design; fixed effects; inference; jackknife; weak instruments;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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