Blunt Instruments: Avoiding Common Pitfalls in Identifying the Causes of Economic Growth

By Samuel Bazzi, Michael A. Clemens. 2013

543 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/5b6a56b36e7fd9b69d23dc0368d10c52fb8fa200

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Citations in the corpus

Malthus living in a slum: Urban concentration, infrastructures and economic growth (2017, unknown): “As Bazzi and Clemens (2013) note, there is yet no reliable and straightforward test for the strength of the instrument set in Sys-GMM estimations.”
Aid and growth: New evidence using an excludable instrument (2020, unknown): “Population size can affect growth through many channels that researchers cannot control for and is thus not excludable (Bazzi and Clemens 2013).”
Does foreign aid harm political institutions (2015, background): “We recognise that both external and internal instrumental variables procedures to address the endogeneity of aid are controversial (Roodman, 2009; Bun and Windmeijer, 2010; Bazzi and Clemens, 2013). For example, the identifying assumption that income in some previous period only affects institutions”
The effect of aid on growth: evidence from a Quasi-experiment (2014, unknown): “However, recent studies show that GMMestimators of dynamic panel models using all mechanical instruments are unstable and potentially severely biased infinite samples, due to the problemofmany andweak instruments (Roodman 2007, 2009a, b; Bazzi and Clemens 2013; Bun and Windmeijer 2010).”
Why Don't Remittances Appear to Affect Growth? (2014, unknown): “All such efforts face important challenges in cross-country data, where the strongest instruments can be the least valid, and vice versa (Bazzi and Clemens 2013).”
Inequality and economic growth: the role of initial income (2018, unknown): “9 As noted in Bazzi and Clemens (2013) the Stock and Yogo tabulations were developed in a pure crosssectional context and some caution is warranted when applying them to the panel context.”
Dynamic panel data modelling using maximum likelihood: an alternative to Arellano-Bond (2018, unknown): “…Hsiao, Pesaran, and Tahmiscioglu 2002; Moral-Benito 2013).14 Moreover, concern has intensified in recent years that many instrumental variables of the type considered in panel GMM estimators such as Arellano and Bond (1991) may be invalid, weak, or both (see Bazzi and Clemens 2013; Kraay 2015).”
Trade Liberalization and Poverty: What Have We Learned in a Decade? (2014, background): “Bazzi & Clemens (2013) point out that such excludability implies that if one is using instrument Z for openness in one’s growth equation, one strictly has to believe that every other study that has used Z as an instrument for some other variable in a growth equation (e.g., for aid flows,…”
Finance and economic growth in OECD and G20 countries (2015, background): “Subsequently, Beck et al. (2000) and Levine et al. (2000) argued, relying on GMM estimations, that more finance causes higher GDP growth.”
Sovereign and corporate credit risk: Evidence from the Eurozone (2015, methodology): “Based on these critical values we report the p-values for the t-test size at 10% and at 25% following the approach in Bazzi and Clemens (2013).”
Reducing Child Undernutrition: Past Drivers and Priorities for the Post-MDG Era (2014, methodology): “…we use current techniques to ensure that the instruments used for testing are relevant or “ strong ” (correlate suﬃciently with the variable of interest) and valid (do not aﬀect stunting through channels other than the variable of interest) (Baum, Schaﬀer, & Stillman, 2007; Bazzi & Clemens, 2013).”