Generalized instrumental inequalities: testing the instrumental variable independence assumption

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dc.contributor.author Kedagni, Desire
dc.contributor.author Mourifié, Ismael
dc.contributor.author Kedagni, Desire
dc.contributor.department Economics
dc.date 2020-03-06T14:42:02.000
dc.date.accessioned 2020-06-30T02:09:04Z
dc.date.available 2020-06-30T02:09:04Z
dc.date.copyright Wed Jan 01 00:00:00 UTC 2020
dc.date.issued 2020-02-29
dc.description.abstract <p>This paper proposes a new set of testable implications of the instrumen- tal variable (IV) independence assumption: generalized instrumental inequalities. In our leading case with a binary outcome, we show that the generalized instrumen- tal inequalities are necessary and sufficient to detect all observable violations of the IV independence assumption. To test the generalized instrumental inequalities, we propose an approach combining a sample splitting procedure and intersection bounds inferential methods. This idea allows one to easily implement the test using the Stata package of Chernozhukov, Kim, Lee, and Rosen (2015).We apply our pro- posed strategy to assess the validity of the IV independence assumption for various instruments used in the returns to college literature.</p>
dc.description.comments <p>This is a manuscript of an article published as Kédagni, Désiré, and Ismael Mourifié. "Generalized instrumental inequalities: testing the instrumental variable independence assumption." <em>Biometrika</em> (2020). doi: <a href="https://doi.org/10.1093/biomet/asaa003">10.1093/biomet/asaa003</a>. Posted with permission.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_pubs/685/
dc.identifier.articleid 1697
dc.identifier.contextkey 16730986
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_pubs/685
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/21925
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_pubs/685/2020_Kedagni_GeneralizedInstrumentalManuscript.pdf|||Sat Jan 15 01:29:33 UTC 2022
dc.source.uri 10.1093/biomet/asaa003
dc.subject.disciplines Econometrics
dc.subject.disciplines Economic Theory
dc.subject.keywords Instrumental variable
dc.subject.keywords Independence assumption
dc.subject.keywords Sharp inequalities
dc.subject.keywords Intersection bounds
dc.title Generalized instrumental inequalities: testing the instrumental variable independence assumption
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication 6bd288df-bd5f-4b47-8b32-22afa9ba05af
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
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