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Dynamic Instrumental Variables/Evidence
Method evidence record

Dynamic Instrumental Variables

Dynamic Instrumental Variables estimation addresses endogeneity in panel models where the outcome depends on its own past values. By first-differencing to remove unit fixed effects and then using lagged levels as instruments for the differenced lagged outcome, it produces consistent causal estimates even when standard OLS or fixed-effects are biased by dynamic feedback.

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Source record

Citations copied verbatim from the method’s source record. No claim-level verification is inferred from them.

Dynamic Panel Instrumental Variables Estimation
Taxonomic method record · regression-model / causal-inference
  • Arellano, M., & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. Review of Economic Studies, 58(2), 277-297. · DOI 10.2307/2297968
  • Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115-143. · DOI 10.1016/S0304-4076(98)00009-8
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Related methods

Generated from the method graph and shown as machine-suggested relations — no evidence claim is inferred.

Same method family2SLS Regressionmachine-suggested · Relational suggestion, not evidence.Same method familyDifference-in-Differencesmachine-suggested · Relational suggestion, not evidence.See alsoInstrumental Variables in Health Researchmachine-suggested · Relational suggestion, not evidence.Taxonomic bucketPanel Data Instrumental Variablesmachine-suggested · Relational suggestion, not evidence.Same method familyPanel Fixed Effectsmachine-suggested · Relational suggestion, not evidence.

Evidence status

Sources recorded, not reviewed

Bibliographic sources are present. Claim-level evidence review has not been performed.

Sources

2 recorded citations, copied from the method source record.

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