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Title: On the interpretation of instrumental variables in the presence of specification error
Authors: Hall, Stephen G.
Tavlas, G. S.
Swamy, P. A. V. B.
First Published: 2015
Publisher: MDPI
Citation: Econometrics 2015, 3(1), 55-64
Abstract: The method of instrumental variables (IV) and the generalized method of moments (GMM), and their applications to the estimation of errors-in-variables and simultaneous equations models in econometrics, require data on a sufficient number of instrumental variables that are both exogenous and relevant. We argue that, in general, such instruments (weak or strong) cannot exist.
Series/Report no.: University of Leicester Department of Economics Working Paper;14/19
DOI Link: 10.3390/econometrics3010055
ISSN: 2225-1146
eISSN: 2225-1146
Version: Publisher Version
Status: Peer-reviewed
Type: Journal Article
Rights: © 2015 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution license (
Description: JEL classification: C11; C13
Appears in Collections:Published Articles, Dept. of Economics

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