Weak Instruments: Diagnosis and Cures in Empirical Econometrics

By Jinyong Hahn, Jerry A. Hausman. 2003

303 citations recorded by the source corpus.

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Citations in the corpus

Asymptotic properties of the Hahn-Hausman test for weak-instruments (2005, background): “Hahn and Hausman (2002, 2003) suggest that tests based on these statistics will reject if one or the other of the conditions for instrument validity fail, that is, if the instruments are weak and/or if they are endogenous.”
Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles (2018, unknown): “The main disadvantage of using city-specific HSO dummies is that such a specification, although consistent, increases the chance of a bias in the estimate because we employ many instruments for one endogenous variable (Hahn & Hausman 2003, Angrist & Pischke 2008).”
On the Use of Instrumental Variables in Accounting Research (2010, background): “The effect of these two problems is that standard inference based on t-statistics and Wald statistics can be highly misleading in the case of weak instruments (e.g., Bound, Jaeger, and Baker, 1995; Staiger and Stock, 1997; Hahn and Hausman, 2003; and others).”
TESTING FOR CAUSALITY BETWEEN PRODUCTIVITY AND AGGLOMERATION ECONOMIES (2010, unknown): “A detailed description of the background to the ABI and its content is provided by Jones (2000). To measure urbanization we use the market potential calculation Ui = Ei di + ∑ j Ej dij , where Ei is employment in PCS i, dij is the distance between PCS i and j, and di is an approximation to the inter”
Cross‐Country Determinants of Early‐Stage Necessity and Opportunity‐Motivated Entrepreneurship: Accounting for Model Uncertainty (2018, unknown): “This creates second-order NIKOLAEV, BOUDREAUX, AND PALICH 261 questions of uncertainty about how well the instrument meets these conditions (Hahn and Hausman 2003).”
Endogeneity in Residential Location Choice Models (2006, background): “attributes from other zones should be correlated with the price of the analysis zone, the usage of such instruments would possibly lead to a weak-instruments problem (19).”
Socio-Cultural Variables and Economic Success: Evidence from Italian Provinces 1951-1991 (2004, background): “However, as growth rates of very small sectors 3See Stock et al. (2002) and Hahn and Hausman (2002). are often very noisy, we only include those industries which accounted for at least 1% of the manufacturing employment of a province in 1951.”
Estimation with Valid and Invalid Instruments (2003, unknown): “(2002) and Hahn and Hausman (2003).”
Controlling for endogeneity with instrumental variables in strategic management research (2008, methodology): “The following formula for the finite-sample bias of the 2SLS estimation, under conditions of overidentification and in its simplified specification, illuminates this point (Hahn and Hausman, 2002, 2003):19 Where E(̂1 2SLS) 1 represents the bias of the 2SLS coefficient.”
CEO Compensation in Private Family Firms (2013, background): “2SLS with weak instruments can suffer from finite sample bias and thus yield misleading estimates of statistical significance (L. M. Cruz & Moreira, 2005; Hahn & Hausman, 2003; Murray, 2006).”
Frugal IV alternatives to identify the parameter for an endogenous regressor (2009, methodology): “1 See also Stock et al. (2002) and Hahn and Hausman (2003) for an extensive summary.”