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• W2027141508 abstract "Some theoretical results published recently in Hendry (1979) for the limiting distribution of inconsistent instrumental variable estimators in misspecified dynamic systems are incorrect. In particular, the derivations there involve the use of an inappropriate control variate and lead to an expression for the covariance matrix of the limiting distribution which, in general, omits many additional terms. Correct formulae are given in the present paper. Further, the accuracy of the asymptotic distribution in finite samples is investigated in a simple case using the known exact small sample distribution. On the basis of our exact results and in view of other strong theoretical and practical considerations, we argue for caution in the use of response surface regressions of the type recommended by Hendry in Monte Carlo experiments; and we emphasize the need for qualifying statements concerning the parameter environments in which the adequacy of these regressions has been substantiated." @default.
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• W2027141508 date "1982-08-01" @default.
• W2027141508 modified "2023-09-27" @default.
• W2027141508 title "On the behavior of inconsistent instrumental variable estimators" @default.
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• W2027141508 doi "https://doi.org/10.1016/0304-4076(82)90001-x" @default.
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