Prenatal care should improve infant health, yet research frequently finds only weak effects. If there are two kinds of pregnancies, 'complicated' and 'normal' ones, then combining these pregnancies may lead prenatal care to appear ineffective. Data from the National Maternal and Infant Health Survey (NMIHS) offers compelling evidence. The standard 2SLS approach yields obviously bimodal residual...

This paper examines the determinants of executive compensation in Chinese banking during 2005–2012. Using the fixed effects panel, 2SLS and dynamic GMM regressions, I find that there is no significant positive pay performance relation, and CEO power does not necessarily exhibit higher levels of executive compensation. However, I show that ownership structure (measured by ownership concentration...

This study explores the under-researched relationship between corporate governance and firm performance in tourism companies. We employ instrumental variable modelling using 2SLS for publicly listed firms in five countries in the Middle East. Board independence is found to be positively related to firm performance and stock performance, suggesting that having independent directors among board m...

Empirical researchers often combine multiple instrumental variables (IVs) for a single treatment using two-stage least squares (2SLS). When effects are heterogeneous, common justification including IVs is that the 2SLS estimand can be given causal interpretation as positively weighted average of local (LATEs). This requires well-known monotonicity condition. However, we show with more than one ...

This paper analyzes the higher-order approximation of instrumental variable (IV) estimators in a linear homoskedastic IV regression model when large set instruments with potential invalidity is present. We establish theoretical results on mean-squared error (MSE) two-stage least-squares (2SLS), limited information maximum likelihood (LIML), Fuller (FULL), bias-adjusted 2SLS, and jackknife versi...

We use U.S. county-level data consisting of 3,058 observations, to study growth determination and measure the speed of income convergence. County-level data are particularly valuable for studying convergence because they allow us to study a sample with substantial homogeneity and exceptional mobility of capital, labor and technology without sacrificing the benefits of a large number of cross-se...

Instrumental variable (IV) strategies are commonly used in political science to establish causal relationships, yet the identifying assumptions required by an IV design demanding and it remains challenging for researchers evaluate their plausibility. We replicate 61 papers published three top journals from past decade (2011-2020) document several troubling patterns: (1) often miscalculate first...

Pertumbuhan ekonomi Produk Domestik Regional Bruto (PDRB) diidentikkan sebagai ukuran kesejahteraan masyarakat. Usaha mikro kecil (UMK) di Indonesia dapat menjadi pendukung dalam pertumbuhan karena UMK memiliki karakteristik positif sektor yang mampu menyediakan lapangan pekerjaan besar. Pengeluaran juga mempengaruhi PDRB, menunjukkan masyarakat memenuhi kebutuhan hidupnya. Jawa Timur salah sat...