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Title: The Nonexistence of Instrumental Variables
Authors: Hall, Stephen G.
Tavlas, George S.
Swamy, P. A. V. B.
First Published: Mar-2011
Publisher: Dept. of Economics, University of Leicester
Abstract: The method of instrumental variables (IV) and the generalized method of moments (GMM) has become a central technique in health economics as a method to help to disentangle the complex question of causality. However the application of these techniques require data on a sufficient number of instrumental variables which are both independent and relevant. We argue that in general such instruments cannot exist. This is a reason for the widespread finding of weak instruments.
Series/Report no.: Papers in Economics;11/24
Type: Report
Appears in Collections:Reports, Dept. of Economics

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