Economic Returns to Schooling in Urban China: Ordinary Least Squares the Instrumental Variables Approach

2013 ◽  
pp. 97-114
Author(s):  
Guifu Chen ◽  
Shigeyuki Hamori
Keyword(s):  
Least Squares ◽  
Instrumental Variables ◽  
Ordinary Least Squares ◽  
Urban China ◽  
Economic Returns ◽  
Returns To Schooling ◽  
Instrumental Variables Approach

scholarly journals On the Implications of Essential Heterogeneity for Estimating Causal Impacts Using Social Experiments

2015 ◽  
Vol 4 (1) ◽  
Author(s):  
Martin Ravallion
Keyword(s):  
Standard Model ◽  
Least Squares ◽  
Instrumental Variables ◽  
Ordinary Least Squares ◽  
Costs And Benefits ◽  
Social Experiments ◽  
Latent Heterogeneity ◽  
The Standard Model ◽  
Essential Heterogeneity

AbstractThe standard model of essential heterogeneity, whereby program take up depends on unobserved costs and benefits of take up, is generalized to allow the source of latent heterogeneity to influence counterfactual outcomes. The standard instrumental variables (IV) estimator is shown to still be preferable to the naïve, ordinary least squares (OLS), estimator for mean impact on the treated. However, under certain conditions, the IV estimate of the overall mean impact will be even more biased than OLS. Examples are given for stylized training, insurance and microcredit schemes.

Corporate Governance and Innovation

2012 ◽  
Vol 47 (2) ◽  
pp. 397-413 ◽  
Author(s):  
Matthew O’Connor ◽  
Matthew Rafferty
Keyword(s):  
Corporate Governance ◽  
Least Squares ◽  
Instrumental Variables ◽  
Serial Correlation ◽  
Ordinary Least Squares ◽  
Innovative Activity ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Unobserved Effects ◽  
The Relationship

AbstractWe use Tobin’s q models of investments to estimate the relationship between corporate governance and the level of innovative activity. Simple ordinary least squares (OLS) models suggest that poor governance reduces innovative activity. However, OLS results are sensitive to controlling for serial correlation, unobserved effects, or using instrumental variables to control simultaneity. Controlling for these effects substantially reduces or eliminates the relationship between governance and innovative activity.

scholarly journals Does Trade Cause Growth?

1999 ◽  
Vol 89 (3) ◽  
pp. 379-399 ◽  
Author(s):  
Jeffrey A Frankel ◽  
David Romer
Keyword(s):  
Least Squares ◽  
Instrumental Variables ◽  
Ordinary Least Squares ◽  
Significant Positive Effect ◽  
Direction Of Causation ◽  
Least Squares Estimates ◽  
Positive Effect

Examining the correlation between trade and income cannot identify the direction of causation between the two. Countries' geographic characteristics, however, have important effects on trade, and are plausibly uncorrelated with other determinants of income. This paper therefore constructs measures of the geographic component of countries' trade, and uses those measures to obtain instrumental variables estimates of the effect of trade on income. The results provide no evidence that ordinary least-squares estimates overstate the effects of trade. Further, they suggest that trade has a quantitatively large and robust, though only moderately statistically significant, positive effect on income. (JEL F43, O40)

Economic returns to schooling in urban China, 1988 to 2001

2005 ◽  
Vol 33 (4) ◽  
pp. 730-752 ◽  
Author(s):  
Junsen Zhang ◽  
Yaohui Zhao ◽  
Albert Park ◽  
Xiaoqing Song
Keyword(s):  
Urban China ◽  
Economic Returns ◽  
Returns To Schooling
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