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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 38, No. 1, pp.51-68
ISSN: 1225-0279 (Print)
Print publication date 28 Feb 2025
Received 15 Jan 2025 Accepted 15 Jan 2025
DOI: https://doi.org/10.22904/sje.2025.38.1.003

Recent Applications of Generalized Instrumental Variable Models

Dongwoo Kim
Department of Economics, Simon Fraser University, 8888 University Drive, Burnaby, BC, Canada, V5A 1S6 dongwook@sfu.ca

JEL Classification: C10, C26, C50

Abstract

This study comprehensively reviews recent developments in the application of the generalized instrument variable (GIV) framework introduced by Chesher and Rosen (2017, Econometrica). The GIV framework effectively derives sharp bounds (equivalent to identified sets) in incomplete models. Focusing on limited dependent variable models with endogeneity, this study demonstrates the application of general identification results to obtain the identified set in specific settings. Moreover, practical implementation challenges that may arise are discussed, and potential strategies for overcoming them are highlighted in empirical research.

Keywords:

GIV model, Partial identification, Moment inequalities, Identified set, Sharp bounds, Subvector inference

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