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The reduced form: A simple approach to inference with weak instruments

by: Victor Chernozhukov, Christian Hansen
Economics Letters, Vol. 100, No. 1. (July 2008), pp. 68-71, doi:10.1016/j.econlet.2007.11.012  Key: citeulike:11292939

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Abstract

In this paper, we show that conventional heteroskedasticity and autocorrelation robust inference procedures based on the reduced form provide tests and confidence intervals for structural parameters that are valid when instruments are strongly or weakly correlated to the endogenous variables.


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