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...

Stefani Kostagianni, Department of Economics and Finance and Centre for Economic Development and Institutions (CEDI), Brunel University, London, United Kingdom, E-mail: [email protected] ABSTRACT. We investigate the effect of IMF assistance on economic growth in a broad panel of countries. We argue that countries are likely self-select into seeking IMF involvement based on their ...

This paper examines whether lax environmental policy and abundant natural resources both attract foreign direct investment (FDI). At first, their potential effects are discussed using arguments from the pollution haven hypothesis and the natural resource curse. Using cross-country Ordinary Least Square (OLS) regressions and robustness checks like Instrumental Variable Two-Stage Least Squares (I...

This study integrates the constructs of organisational change strategies, market orientation, top management behaviour, leadership style, learning orientation and business performance. A survey was sent to the top 2,000 organisations within Australia, as defined by annual revenue. Data was analysed using twostage least squares regression (2SLS). Findings indicate that both planned and emergent ...

Summary: In heterogeneous treatment effect models with endogeneity, identification of the local average (LATE) typically relies on availability an exogenous instrument monotonically related to participation. First, we demonstrate that a strictly weaker monotonicity condition—invoked for specific potential outcome values rather than globally—identifies LATEs compliers and defiers. Second, show o...

Using a dataset of Texas Instruments (TI) calculator auctions on eBay, we estimate the impact of the number of bidders on the winning bid. We highlight the possible endogeneity associated with using the number of observed bidders. We tackle this problem by employing approaches involving instrumental variables. We introduce a novel instrumental variable, the closing interval between successive a...

This paper considers parametric inference in a wide range of structural econometric models. It illustrates how the indirect inference principle can be used in the inference of these models. Specifically, we show that an ordinary least squares (OLS) estimation can be used as an auxiliarymodel, which leads to amethod that is similar in spirit to a two-stage least squares (2SLS) estimator. Monte C...

This study investigates the effect of cell phones on economic development and growth by performing an econometric analysis using data from the International Telecommunications Union and the Penn World Table. It discusses the various ways cell phones can make markets more efficient and how the diffusion of information and knowledge plays into development. Several approaches (OLS, Fixed Effects, ...