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• W1567972044 abstract "We analyze a class of linear regression models including interactions of endogenous regressors and exogenous covariates. We show how to generate instrumental variables using the nonlinear functional form of the structural equation when traditional excluded instruments are unknown. We propose to use these instruments with identification robust IV inference. We furthermore show that, whenever functional form identification is not valid, the ordinary least squares (OLS) estimator of the coefficient of the interaction term is consistent and standard OLS inference applies. Using our alternative empirical methods we confirm recent empirical findings on the nonlinear causal relation between financial development and economic growth." @default.
• W1567972044 created "2016-06-24" @default.
• W1567972044 creator A5020907269 @default.
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• W1567972044 date "2018-03-08" @default.
• W1567972044 modified "2023-10-16" @default.
• W1567972044 title "OLS and IV estimation of regression models including endogenous interaction terms" @default.
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• W1567972044 doi "https://doi.org/10.1080/07474938.2018.1427486" @default.
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