Abstract
Instrumental variables methods are an essential tool in modern econometric practice. The method itself is of ancient lineage and historically is closely connected with the econometrics of simultaneous equations. This article describes the statistical foundations of instrumental variables methods with a focus on their classical development.
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Bates, C.E. (2018). Instrumental Variables. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1177
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DOI: https://doi.org/10.1057/978-1-349-95189-5_1177
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