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Khawand, Christopher – Society for Research on Educational Effectiveness, 2012
Instrumental variables (IV) methods allow for consistent estimation of causal effects, but suffer from poor finite-sample properties and data availability constraints. IV estimates also tend to have relatively large standard errors, often inhibiting the interpretability of differences between IV and non-IV point estimates. Lastly, instrumental…
Descriptors: Least Squares Statistics, Labor Supply, Measurement Techniques, Error of Measurement