Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/46184 
Erscheinungsjahr: 
2010
Schriftenreihe/Nr.: 
IZA Discussion Papers No. 5216
Verlag: 
Institute for the Study of Labor (IZA), Bonn
Zusammenfassung: 
The linear IV estimator, in which the dependent variable is a linear function of a potentially endogenous regressor, is a major workhorse in empirical economics. When this regressor takes on multiple values, the linear specification restricts the marginal effects to be constant across all margins. This paper investigates the problems caused by the linearity restriction in IV estimation, and discusses possible remedies. We first examine the biases due to nonlinearity in the commonly used tests for non-zero treatment effects, selection bias, and instrument validity. Next, we consider three applications where theory suggests a nonlinear relationship, yet previous research has used linear IV estimators. We find that relaxing the linearity restriction in the IV estimation changes the qualitative conclusions about the relevant economic theory and the effectiveness of different policies.
Schlagwörter: 
linear model
variable treatment intensity
nonlinearity
instrumental variables
JEL: 
C31
C14
Dokumentart: 
Working Paper

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