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|Title: ||The Nonexistence of Instrumental Variables|
|Authors: ||Hall, Stephen G.|
Tavlas, George S.
Swamy, P. A. V. B.
|Issue Date: ||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|
|Appears in Collections:||Reports, Dept. of Economics|
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