Thursday, January 26, 2006

A good example of IV usage

Apropos Prof. Deb's lecture tonight, I was reminded of an article I read over the break that demonstrated good usage of an instrumental variable (religious market density) to isolate the effect of religious participation on income. The link to Jonathan Gruber's paper is http://www.nber.org/papers/w11377. You can download the entire paper by submitting your Hunter e-mail address.

Note, I first learned of this paper through an 'Economics Focus' article in The Economist.

Also, in light of tonight's talk, I'd also like to encourage everyone who finds a good data source to send me an e-mail. We'll begin to compile these sources on the blog.

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