This paper proposes and discusses an instrumental variable estimator that can be of particular relevance when many instruments are available. Intuition and recent work (see, e.g., Hahn (2002)) suggest that parsimonious devices used in the construction of the final instruments, may provide effective estimation strategies. Shrinkage is a well known approach that promotes parsimony. We consider a ...

We examine the relationship between bank’s equity ownership and corporate financial performance based on cross-sectional data through 2SLS estimation model. Our evidence is listed 3203 non...

A system of nonlinear biomass component equations was developed for slash pine (Pinus elliottii Engelm. var. elliottii) trees using an econometric approach in which endogenous right-hand-side variables were included some equations. The fitted to data from 306 sampled the southeastern United States with weighted two-stage (2SLS) and three-stage (3SLS) least squares full information maximum-likel...

The study investigated the determinants of birth weight in Botswana using instrumental variable (2SLS) model applied to the Botswana Family Health Survey (BFHS) data for 1996. The findings suggest that birth weight is positively and significantly influenced by the mother’s socioeconomic characteristics (tetanus immunization status, age, education level) and the husband’s education level. From t...

I use the bootstrap to study a comprehensive sample of 1400 instrumental variables regressions in 32 papers published in the journals of the American Economic Association. IV estimates are more often found to be falsely significant and more sensitive to outliers than OLS, while having a higher mean squared error around the IV population moment. There is little evidence that OLS estimates are su...