On The Interpretation of Instrumental Variables in the Presence of Specification Errors: A Causal Comment
Swamy et al. (2015) argue that valid instruments cannot exist when a structural model is misspecified. This note shows that this is not true in general. In simple examples valid instruments can exist and can help to estimate parameters of interest.
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| Format: | Article |
| Language: | English |
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MDPI AG
2017-07-01
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| Series: | Econometrics |
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| Online Access: | https://www.mdpi.com/2225-1146/5/3/31 |