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Annual Review of Economics· 2019Q1· Review

Weak Instruments in Instrumental Variables Regression: Theory and Practice

Isaiah Andrews, James H. Stock, Liyang Sun

Short summary

Weak instruments in IV regression undermine standard estimation and inference, a problem that persists in practice despite existing literature, especially with non-homoskedastic data.

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Field: General Economics, Econometrics and Finance

General Economics, Econometrics and FinanceEconomics, Econometrics and Finance