Have Instrumental Variables Brought Us Closer to the Truth

By Wei Jiang. 2017

371 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/bb0add8b2137e98b901ba3ef3a72e9f43400b51f

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

1. David Yermack
2. T. Ladika
3. Zhuo Chen
4. C. Liu
5. Sabrina T. Howell
6. Zhiguo He
7. J. Reynaud
8. Francesca Caselli

In Finance

1. Zacharias Sautner
2. T. Ladika
3. David Yermack
4. Zhuo Chen
5. C. Liu
6. Sabrina T. Howell
7. Zhiguo He
8. J. Reynaud

Citations in the corpus

• Managerial Short-Termism and Investment: Evidence from Accelerated Option Vesting* (2019, positive): “As few variables are fully exogenous, our instrument FAS 123-R takes effect is reasonable as long as its direct effect on investment is small relative to its effect on the endogenous option-acceleration variable (Jiang, 2017). In our 2SLS model, this is equivalent to a small cZ/p1 ratio, where cZ is”
• Peer effects in corporate disclosure decisions (2020, positive): “In an untabulated test, I use the multivariate regression framework to corroborate the above findings (e.g., Kaustia and Rantala, 2015; Jiang, 2017).”
• Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales (2018, positive): “As Jiang (2015) explains, this can lead to a larger IV effect even if the exclusion restriction is satisfied.”
• The financing of local government in China: Stimulus loan wanes and shadow banking waxes (2020, positive): “Note that the seemingly large difference in IV relative to OLS estimators in GDP capita is consistent with the average in the literature (about nine times) reviewed by Jiang (2017) , who discusses the role of weak instruments, a problem shared by our paper as explained in Section 4.”
• Do fiscal rules cause better fiscal balances? A new instrumental variable strategy (2019, background): “In fact, an instrument that weekly correlates with the endogenous variable will amplify a very small (and unknown) violation of the exclusion restriction (Jiang 2017, Bound and others 1995).”