In a seminal paper Nagar (1959) obtained moment approximations for the k-class of estimators in a general static simultaneous equation model under the assumption that the structural disturbances were i.i.d and normally distributed. While it has been known for some time that the normality assumption can be relaxed when obtaining the bias approximation, it has not been demonstrated that the secon...

In randomised controlled trials that have non-compliance with the treatment assigned, policy makers require unbiased estimates of the causal effect of the treatment received. Instrumental variable (IV) approaches provide complier average causal effects (CACE) estimates. Common IV methods such as two-stage least squares (2SLS) have not been extended to settings with multivariate outcomes. We pro...

Applied researchers often confront two issues when using the fixed effect-two-stage least squares (FE-2SLS) estimator for panel data models. One is that it may lose its consistency due to too many instruments. The other gain of FE-2SLS not exceed loss endogeneity weak. In this paper, an L2Boosting regularization procedure models proposed tackle instruments issue. We then construct a Stein-like ...

We propose two simple bias reduction procedures that apply to estimators in a general static simultaneous equation model. Standard jackknife estimators, as applied to 2SLS, may not reduce the bias of the exogenous variable coefficient estimators since the estimator biases are not monotonically non-increasing with sample size (a necessary condition for successful bias reduction) and they have mo...

This appendix provides additional details of the robustness checks that are not fully explained in the paper due to limited space. The first section of this appendix discusses alternative estimations of the baseline model, Equation (1). The second section provides the details about the propensity score matching (PSM) Analysis. The third section presents more details about our two-stage least sq...

The aim of this paper is to re-examine the relationship between financial development and international trade within structural gravity model. Unlike previous literature, we implement an identification strategy that considers intra-national flows in addition data order deal with issues perfect collinearity multilateral resistances terms (MRTs). Using a sample 64 countries two frameworks (cross-...

The novel COVID-19 virus, and the pandemic that has followed its spread, had a massive impact on banking industry global level. Therefore, considering this context, study examines effect of sector’s performance in Asian emerging economics, over time span ranging from 2016Q1–2021Q2. For purpose, makes use FE, RE, 2SLS, PPML regression models. empirical findings show GDP size are positively relat...

Instrumental variable estimates of causal effects can be biased when using many instruments that are only weakly associated with the exposure. We describe several techniques to reduce this bias and estimate corrected standard errors. We present our findings using a simulation study and an empirical application. For the latter, we estimate the effect of height on lung function, using genetic var...

in this paper, we will review the foreign exchange market and will try to extract an exchange market pressure and an intervention index for iran by following the weymark (1995) approach to evaluate the central bank of iran’s exchange rate policy during 1368:q1 to 1391:q3. the estimation method employed, is the econometric technique known in the literature as the two-stage least squares (2sls).t...