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Instrumental variables estimation with partially missing instruments

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  • Mogstad, M.
  • Wiswall, M.

Abstract

This paper shows that instrumental variables estimators currently in use, require strong but neglected auxiliary assumptions to be consistent in situations with partially missing instruments. We introduce an alternative instrumental variables estimator that does not require auxiliary assumptions.

Suggested Citation

  • Mogstad, M. & Wiswall, M., 2012. "Instrumental variables estimation with partially missing instruments," Economics Letters, Elsevier, vol. 114(2), pages 186-189.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:2:p:186-189
    DOI: 10.1016/j.econlet.2011.10.013
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    8. Mogstad, Magne & Wiswall, Matthew, 2009. "How Much Should We Trust Linear Instrumental Variables Estimators? An Application to Family Size and Children's Education," IZA Discussion Papers 4562, Institute of Labor Economics (IZA).
    9. Ichimura, Hidehiko & Todd, Petra E., 2007. "Implementing Nonparametric and Semiparametric Estimators," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 74, Elsevier.
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    13. Joshua Angrist & Victor Lavy & Analia Schlosser, 2010. "Multiple Experiments for the Causal Link between the Quantity and Quality of Children," Journal of Labor Economics, University of Chicago Press, vol. 28(4), pages 773-824, October.
    14. Julio Cáceres-Delpiano, 2006. "The Impacts of Family Size on Investment in Child Quality," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
    15. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    16. Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Testing the Quantity-Quality Fertility Model: The Use of Twins as a Natural Experiment," Econometrica, Econometric Society, vol. 48(1), pages 227-240, January.
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    18. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
    19. David Card, 1993. "Using Geographic Variation in College Proximity to Estimate the Return to Schooling," NBER Working Papers 4483, National Bureau of Economic Research, Inc.
    20. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice: Reply," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 27-28, January.
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    Cited by:

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    2. Michele Giannola, 2024. "Parental Investments and Intra-household Inequality in Child Human Capital: Evidence from a Survey Experiment," The Economic Journal, Royal Economic Society, vol. 134(658), pages 671-727.
    3. Jesper Bagger & Javier A Birchenall & Hani Mansour & Sergio Urzúa, 2021. "Education, Birth Order and Family Size [Family size and children’s education in Vietnam]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 33-69.
    4. Peter Grajzl & Valentina Dimitrova-Grajzl & Katarina Zajc, 2016. "Inside post-socialist courts: the determinants of adjudicatory outcomes in Slovenian commercial disputes," European Journal of Law and Economics, Springer, vol. 41(1), pages 85-115, February.
    5. Chris Muris, 2020. "Efficient GMM Estimation with Incomplete Data," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 518-530, July.
    6. Melvin Stephens & Takashi Unayama, 2019. "Estimating the Impacts of Program Benefits: Using Instrumental Variables with Underreported and Imputed Data," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 468-475, July.
    7. Wang, Le, 2013. "Estimating returns to education when the IV sample is selective," Labour Economics, Elsevier, vol. 21(C), pages 74-85.
    8. Ryo Kato & Takahiro Hoshino, 2020. "Semiparametric Bayesian Instrumental Variables Estimation for Nonignorable Missing Instruments," Discussion Paper Series DP2020-06, Research Institute for Economics & Business Administration, Kobe University.
    9. Lipeng Li & Apurbo Sarkar & Xi Zhou & Xiuling Ding & Hua Li, 2022. "Influence and Action Mechanisms of Governmental Relations Embeddedness for Fostering Green Production Demonstration Household: Evidence from Shaanxi, Sichuan, and Anhui Province, China," IJERPH, MDPI, vol. 19(19), pages 1-25, September.

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    More about this item

    Keywords

    Instrumental variables; Partially missing instruments; Family size and child development;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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