A Specification Test for Instrumental Variables Regression with Many Instruments

This paper considers specification testing for instrumental variables estimation in the presence of many instruments. The test proposed is a modified version of the Sargan (1958, Econometrica 26(3): 393-415) test of overidentifying restrictions. The test statistic asymptotically follows the standard normal distribution under the null hypothesis of correct specification when the number of instruments increases with the sample size. We find that the new test statistic is numerically equivalent up to a sign to the test statistic proposed by Hahn and Hausman (2002, Econometrica 70(1): 163-189). We also assess the size and power properties of the test.Instrumental variables estimation, Many instruments, Overidentifying restrictions test, Specification test

Specification Testing in Models with Many Instruments

This paper studies the asymptotic validity of the Anderson-Rubin (AR) test and the J test of overidentifying restrictions in linear models with many instruments. When the number of instruments increases at the same rate as the sample size, we establish that the conventional AR and J tests are asymptotically incorrect. Some versions of these tests, that are developed for situations with moderately many instruments, are also shown to be asymptotically invalid in this framework. We propose modifications of the AR and J tests that deliver asymptotically correct sizes. Importantly, the corrected tests are robust to the numerosity of the moment conditions in the sense that they are valid for both few and many instruments. The simulation results illustrate the excellent properties of the proposed tests.Instrumental variables, many instruments, Bekker?s asymptotics, Anderson? Rubin test, test for overidentifying restrictions.

Testing for Weak Instruments in Linear IV Regression

Weak instruments can produce biased IV estimators and hypothesis tests with large size distortions. But what, precisely, are weak instruments, and how does one detect them in practice? This paper proposes quantitative definitions of weak instruments based on the maximum IV estimator bias, or the maximum Wald test size distortion, when there are multiple endogenous regressors. We tabulate critical values that enable using the first-stage F-statistic (or, when there are multiple endogenous regressors, the Cragg-Donald (1993) statistic) to test whether given instruments are weak. A technical contribution is to justify sequential asymptotic approximations for IV statistics with many weak instruments.

GMM Estimation with Noncausal Instruments

Lagged variables are often used as instruments when the generalized method of moments (GMM) is applied to time series data. We show that if these variables follow noncausal autoregressive processes, their lags are not valid instruments and the GMM estimator is inconsistent. Moreover, in this case, endogeneity of the instruments may not be revealed by the J-test of overidentifying restrictions that may be inconsistent and, as shown by simulations, its finite-sample power is, in general, low. Although our explicit results pertain to a simple linear regression, they can be easily generalized. Our empirical results indicate that noncausality is quite common among economic variables, making these problems highly relevant.Noncausal autoregression; instrumental variables; test of overidentifying restrictions

Validity and Reliability of an Inertial Device for Measuring Dynamic Weight-Bearing Ankle Dorsiflexion

A decrease in ankle dorsiflexion causes changes in biomechanics, and different instruments have been used for ankle dorsiflexion testing under static conditions. Consequently, the industry of inertial sensors has developed easy-to-use devices, which measure dynamic ankle dorsiflexion and provide additional parameters such as velocity, acceleration, or movement deviation. Therefore, the aims of this study were to analyze the concurrent validity and test-retest reliability of an inertial device for measuring dynamic weight-bearing ankle dorsiflexion. Sixteen participants were tested using an inertial device (WIMU) and a digital inclinometer. Ankle dorsiflexion from left and right ankle repetitions was used for validity analysis, whereas test-retest reliability was analyzed by comparing measurements from the first and second days. The standard error of the measurement (SEM) between the instruments was very low for both ankle measurements (SEM 0.05) even though a significant systematic bias (~1.77°) was found for the right ankle (d = 0.79). R2 was very close to 1 in the left and right ankles (R2 = 0.85–0.89) as well as the intraclass correlation coefficient (ICC > 0.95). Test-retest reliability analysis showed that systematic bias was below 1° for both instruments, even though a systematic bias (~1.50°) with small effect size was found in the right ankle (d = 0.49) with WIMU. The ICC was very close to 1 and the coefficient of variation (CV) was lower than 4% in both instruments. Thus, WIMU is a valid and reliable inertial device for measuring dynamic weight-bearing ankle dorsiflexion

Method of Testing Oxygen Regulators

Oxygen regulators are used in aircraft to regulate automatically the flow of oxygen to the pilot from a cylinder at pressures ranging up to 150 atmospheres. The instruments are adjusted to open at an altitude of about 15,000 ft. and thereafter to deliver oxygen at a rate which increases with the altitude. The instruments are tested to determine the rate of flow of oxygen delivered at various altitudes and to detect any mechanical defects which may exist. A method of testing oxygen regulators was desired in which the rate of flow could be determined more accurately than by the test method previously used (reference 1) and by which instruments defective mechanically could be detected. The new method of test fulfills these requirements

The Instrument Test Dewar (ITD): Testing satellite instruments at 1.5 K

The Instrument Test Dewar (ITD) is a cryogenic facility designed and built to test Cosmic Background Explorer (COBE) satellite instruments at 1.5 K. The facility provides a high vacuum and thermal environment with payload thermal, electrical and optical interfaces. There are two concentric vacuum spaces which are not hermitically sealed. The instrument vacuum space is 81.28 cm by 243.84 cm and is cooled by an LHe shroud. The guard vacuum space surrounds an LN2 shroud. There are two separate cryosorption pumping systems and a mechanical LHe pumping system. The data acquisition systems provide payload and housekeeping data. There have been various problems with the facility, and changes and improvements have been made to assure optimum test conditions. COBE instrument testing has been completed on structural, thermal model hardware and the protoflight units

Farmers' behavior and the provision of public goods: towards an analytical framework

The new CAP reform aims to stimulate the role of agriculture as provider of public goods. An analytical framework is developed to model farmers’ decision making and to gain insight into farmers’ behavior in response to a number of policy instruments. The framework integrates characteristics of farm, farmer, market, as well as the policy instruments. Theoretical analysis suggests that attitudes, off-farm employment opportunities, non-pecuniary benefits and expectations of future developments can play important roles in farmer’s decision making regarding the provision of public goods. Empirical research is needed to test the hypothesis

A test chip for automatic reliability measurements of interconnect vias

A test circuit for electromigration reliability measurements was designed and tested. The device under test (DUT) is a via-hole chain. The test circuit permits simultaneous measurements of a number of DUTs, and a fatal error of one DUT does not influence the measurement results of the other DUTs. Measurements require only a few measurement instruments. Comparing the measurement results of a single DUT io the measurement results of the test circuit shows that the test circuit may be used for reliability measurements