Nonparametric Instrumental Variables Estimation
Name
Newey_Nonparametric Instrumental.pdf
Size
512 KB
Format
Adobe PDF
Checksum (MD5)
f3f28e8636cb1e21834086aebd589913
Author(s)
Newey, Whitney K.
Date Issued
May 2013
Journal
American Economic Review
Publisher
American Economic Association
Citation
Newey, Whitney K. “Nonparametric Instrumental Variables Estimation.” American Economic Review 103, no. 3 (May 2013): 550-556. © 2013 the American Economic Association
Version
Final published version
Abstract
In many economic models, objects of interest are functions which satisfy conditional moment restrictions. Economics does not restrict the functional form of these models, motivating nonparametric methods. In this paper we review identification results and describe a simple nonparametric instrumental variables (NPIV) estimator. We also consider a simple method of inference. In addition we show how the ability to uncover nonlinearities with conditional moment restrictions is related to the strength of the instruments. We point to applications where important nonlinearities can be found with NPIV and applications where they cannot.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1257/aer.103.3.550
