Bounding a linear causal effect using relative correlation restrictions
This paper describes and implements a simple approach to the most common problem in applied microeconometrics: estimating a linear causal effct when the explanatory variable of interest might be correlated with relevant unobserved variables. The main idea is to place restrictions on the correlation between the variable of interest and relevant unobserved variables relative to the correlation between the variable of interest and observed control variables. These relative correlation restrictions allow a researcher to construct informative bounds on parameter estimates, and to assess the sensitivity of conventional estimates to plausible deviations from the identifying assumptions. The estimation method and its properties are described, and two empirical applications are demonstrated.
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| Length: | 43 |
| Date of creation: | Aug 2011 |
| Date of revision: | |
| Handle: | RePEc:sfu:sfudps:dp11-02 |
| Contact details of provider: | Postal: Phone: (778)782-3508 Fax: (778)782-5944 Web page: http://www.sfu.ca/economics.html More information through EDIRC
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| Order Information: | Postal: Working Paper Coordinator, Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, V5A 1S6, Canada Web: http://www.sfu.ca/economics/research/publications.html Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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