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Synthetic Instrumental Variables

Authors: Ratbek Dzhumashev; Tursunalieva, Ainura;

Synthetic Instrumental Variables

Abstract

This paper presents a new method for synthesizing instrumental variables using only the dependent and endogenous explanatory variables of the regression model. We show that a valid instruments can be spanned using the dependent and endogenous variables. Then based on this rationale, we construct an estimator that uses moment conditions stemming from the validity of such synthetic instruments. We demonstrate the consistency of the newly-developed estimator using synthetic variables. A computational algorithm is developed using the moments conditions stemming from the consistency of the estimator. One can use this synthetic instrumental variables method as an alternative to traditional external instruments methods.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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