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Plausibly Exogenous
2012
Review of Economics and Statistics
Instrumental variable (IV) methods are widely used to identify causal effects in models with endogenous explanatory variables. In many cases, the instrument exclusion restriction that underlies the validity of the usual IV inference is suspect; that is, the instruments are 'plausibly exogenous.' We develop practical methods of performing inference while relaxing the exclusion restriction. These methods provide tools for applied researchers who want to proceed with less-than-perfectly valid
doi:10.1162/rest_a_00139
fatcat:eruvc67mkrdgtolx74kgoclz74