Avoiding Invalid Instruments and Coping with Weak Instruments

By Michael P. Murray. 2006

1,206 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/9808c7678a51af9200ea9a45249de38cf10ffb8c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

Fiscal decentralization and regional disparities: The importance of good governance (2013, background): “The use of longer lags reduces any correlation between the instrument and the disturbances but it can also, potentially, weaken our instruments (Murray 2006).”
Addressing Endogeneity in International Marketing Applications of Partial Least Squares Structural Equation Modeling (2018, methodology): “Second, according to the exclusion restriction for evaluating IVs when examining endogeneity, each IV should not be correlated with the error term in the original regression model (Murray 2006b).”
The Influence of Neighborhood Poverty During Childhood on Fertility, Education, and Earnings Outcomes (2007, methodology): “First, an OLS regression is estimated based on observations of individual child-years.”
Fiscal Policies and Business Cycles in an Enlarged Euro Area (2008, neutral): “The specific choice of instruments for the differenced equation requires careful consideration ( Murray, 2006 ).”
The relationship between product and international diversification: the effects of short‐run constraints and endogeneity (2009, methodology): “This test uses adjusted critical values for hypothesis tests when the instruments are weak, and as Murray (2006) notes is the ‘state of the art’ for hypothesis testing under these conditions.”
Controlling for endogeneity with instrumental variables in strategic management research (2008, methodology): “This means that if none of the instruments is exogenous, the Sargan, Hansen and Basmann statistics will be biased and inconsistent and can erroneously fail to reject the null hypothesis (Murray, 2006a).”
CEO Succession Origin and Firm Performance: A Multilevel Study (2017, neutral): “Correlation results show that this variable is strongly correlated with outside CEO succession (p<0.001) and not correlated with post-succession firm performance (p>0.10), indicating the suitability of the selected instrument (Murray, 2006) 3 .”
Home Sweet Home: Entrepreneurs' Location Choices and the Performance of Their Ventures (2010, neutral): “14 In general, one worries about two issues in IV regression (see, for example, Murray 2006).”