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Anderson-Hsiao IV/Evidence
Method evidence record

Anderson-Hsiao IV

The Anderson-Hsiao IV estimator is a method for consistently estimating dynamic panel data models that include a lagged dependent variable as a regressor. Proposed by Theodore Anderson and Cheng Hsiao in 1981, it resolves the Nickell bias that arises when fixed effects are eliminated by first-differencing, by instrumenting the differenced lagged dependent variable with its own second lag in levels or differences.

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Anderson-Hsiao Instrumental Variables Estimator
Taxonomic method record · regression-model / econometrics
  • Anderson, T. W., & Hsiao, C. (1981). Estimation of dynamic models with error components. Journal of the American Statistical Association, 76(375), 598–606. · DOI 10.1080/01621459.1981.10477691
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Related methods

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See alsoInstrumental Variables in Health Researchmachine-suggested · Relational suggestion, not evidence.Same method familySystem GMMmachine-suggested · Relational suggestion, not evidence.

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Sources

1 recorded citation, copied from the method source record.

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