Additive Nonparametric Regression in the Presence of Endogenous Regressors

Ozabaci, Deniz; Henderson, Daniel J.; Su, Liangjun

doi:10.2139/ssrn.2427137

Cited by 5 publications

(5 citation statements)

References 38 publications

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“…This estimator is applicable to the economic studies, where the endogenous variable has a potential interaction effect with the other regressors on the response variable. For example, child care use may have a potential indirect effect on students' test scores that can be modeled as in the functional coefficient form that varies with respect to mother's education, age, and experience, among other regressors (see Bernal and Keane (2011) for a parametric estimation and full description of the regressors and Ozabaci et al (2014) for an additive nonparametric regression estimation).…”

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confidence: 99%

Growth and Debt: An Endogenous Smooth Coefficient Approach

Koroglu

2019

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The new growth theories with an emphasis on fundamental determinants such as institutions suggest a non-linear cross-country growth process. In this paper, we investigate the public debt and economic growth relationship using the semi-parametric smooth coefficient approach that allows democracy to influence this relationship and parameter heterogeneity in the unknown functional form and addresses the endogeneity of variables. We find results consistent with the previous literature that identified a significant adverse effect of public debt on growth for the countries below a particular democracy level. However, we also find conclusive evidence that countries with high institutional quality have an adverse effect of public debt on growth for the period 1980–2009, as well as for the extended period including the years 2010–2014. A 10-percentage point increase in the debt-to-GDP ratio is associated with a 0.12% and 0.07% decrease in the subsequent 10-year period real GDP growth rate for the zero democracy countries and for the countries with a democracy score of 10, respectively.

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confidence: 99%

Growth and Debt: An Endogenous Smooth Coefficient Approach

Koroglu

2019

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“…Specifically, we successfully replicate Nunn and Qian () and further consider semiparametric models developed by Ozabaci et al. () (hereafter OHS) to test their claims regarding heterogeneous estimates. Although we find some evidence of nonlinearities, we are unable to statistically show that our estimates differ from those in the aforementioned paper.…”

Section: Introductionmentioning

confidence: 64%

The Robust Relationship Between US Food Aid and Civil Conflict

Chu

Henderson

Wang

2016

J of Applied Econometrics

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Summary Humanitarian aid has long been considered an important means to reduce hunger and suffering in developing countries. A recent finding by Nunn and Qian (US food aid and civil conflict, American Economic Review 2014; 104: 1630–1666) that such aid from the US increases the incidence and duration of civil conflict in recipient countries, however, questions the effectiveness of this policy and poses a serious policy concern for the US government. We revisit this issue by conducting a successful replication study of the results in their paper. In order to further scrutinize their claims that a heterogeneous effect of food aid on conflict is not present, we employ a semiparametric endogenous estimation procedure. We show that their parametric models cannot be rejected and argue that their findings are robust. Copyright © 2016 John Wiley & Sons, Ltd.

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“…Assumption 2 (i)-(ii) ensures the existence ofθ (γ), which is standard in the literature; see, e.g., Newey (1997) and Ozabaci, Henderson, and Su (2014). As the eigenvalues of a squared matrix are a continuous function of the matrix, the uniform boundness holds over a compact set γ, γ as long as the eigenvalues are bounded pointwise.…”

Section: Limiting Resultsmentioning

confidence: 99%

Endogeneity in Semiparametric Threshold Regression

2017

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In this paper, we investigate semiparametric threshold regression models with endogenous threshold variables based on a nonparametric control function approach. Using a series approximation we propose a two-step estimation method for the threshold parameter. For the regression coefficients we consider least-squares estimation in the case of exogenous regressors and two-stage least-squares estimation in the case of endogenous regressors. We show that our estimators are consistent and derive their asymptotic distribution for weakly dependent data. Furthermore, we propose a test for the endogeneity of the threshold variable, which is valid regardless of whether the threshold effect is zero or not. Finally, we assess the performance of our methods using a Monte Carlo simulation.

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Additive Nonparametric Regression in the Presence of Endogenous Regressors

Cited by 5 publications

References 38 publications

Growth and Debt: An Endogenous Smooth Coefficient Approach

Growth and Debt: An Endogenous Smooth Coefficient Approach

The Robust Relationship Between US Food Aid and Civil Conflict

Endogeneity in Semiparametric Threshold Regression

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