%0 Journal Article
%T On the Interpretation of Instrumental Variables in the Presence of Specification Errors
%A P.A.V.B. Swamy
%A George S. Tavlas
%A Stephen G. Hall
%J Econometrics
%P 55-64
%D 2015
%I MDPI AG
%R 10.3390/econometrics3010055
%X The method of instrumental variables (IV) and the generalized method of moments (GMM), and their applications to the estimation of errors-in-variables and simultaneous equations models in econometrics, require data on a sufficient number of instrumental variables that are both exogenous and relevant. We argue that, in general, such instruments (weak or strong) cannot exist.
%K instrumental variables
%K generalized method of moments
%K random coefficient models
%U http://www.mdpi.com/2225-1146/3/1/55