The Department of Economics Lilien Seminar Series: Econometrics presents
"Testing Excludability of Instruments"
with Deven Kapadia, Economics Graduate Student, UC Irvine
Thursday, October 24, 2013
Social Science Plaza B, Room 3218
This study builds on the work of Conley et al. (2012), Kraay (2012), and Chan and Tobias (2012) by developing a test of the subjective exclusion restriction for the instrumental variables model. Simultaneously, the test can determine if the plausibly excludable instruments model is identified. The approach presented here advocates placing informative proper priors distributions on all parameters, but especially relies on the prior beliefs about the relationship between the instrument and outcome variable. By incorporating prior information about the relationship between the instrument and outcome variable into a distribution, Bayesians and non-Bayesians can determine if the resulting posterior distribution supports the exclusion restriction.
For further information, please contact Gloria Simpson, firstname.lastname@example.org or 949-824-5788.