{"id":21320,"date":"2017-02-28T11:20:36","date_gmt":"2017-02-28T11:20:36","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&p=21320"},"modified":"2024-08-19T14:28:22","modified_gmt":"2024-08-19T13:28:22","slug":"methods-for-strengthening-a-weak-instrument-in-the-case-of-a-persistent-treatment","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/methods-for-strengthening-a-weak-instrument-in-the-case-of-a-persistent-treatment\/","title":{"rendered":"Methods for strengthening a weak instrument in the case of a persistent treatment"},"content":{"rendered":"\n

When evaluating policy treatments that are persistent and endogenous, available instrumental variables often exhibit more variation over time than the treatment variable. This leads to a weak instrumental variable problem, resulting in uninformative confidence intervals.<\/p>\n

The authors of this paper propose two new estimation approaches that strengthen the instrument. They derive their theoretical properties and show in Monte Carlo simulations that they outperform standard IV-estimators. The authors use these procedures to estimate the effect of public utility divestiture in the US nuclear energy sector<\/strong>. Their results show that divestiture significantly increases production efficiency.<\/p>\n\n","protected":false},"excerpt":{"rendered":"\n

When evaluating policy treatments that are persistent and endogenous, available instrumental variables often exhibit more variation over time than the…<\/p>\n\n","protected":false},"author":23,"featured_media":0,"template":"","tags":[115,570,568,569,567,229,566],"publication-type":[435],"topic_area":[4694,4697],"class_list":["post-21320","publication","type-publication","status-publish","hentry","tag-energy","tag-monte-carlo-simulation","tag-nuclear-power","tag-public-utility","tag-treatment-evaluation","tag-usa","tag-weak-instrument","publication-type-working-papers","topic_area-policy-evaluation","topic_area-energy"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":["https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2017\/02\/Working-paper-265-Berthelemy-et-al.pdf"],"type":"download","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["michel-berthelemy","petyo-bonev","damien-dussaux-2","magnus-soderberg"],"type":"relationship","post_type":"profile"},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""}},"yoast_head":"\nMethods for strengthening a weak instrument in the case of a persistent treatment - 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