Econometrica: Jul 1978, Volume 46, Issue 4

Least-Squares versus Instrumental Variables Estimation in a Simple Errors in Variables Model<961:LVIVEI>2.0.CO;2-L
p. 961-968

Edward E. Leamer

The maximum likelihood estimate of the structural form of the errors in variable model with an instrumental variable is shown to be the median of the least squares, the reverse least squares, and the instrumental variables estimates, if all three have the same sign.

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