Tag: Exclusion

Illustrating the new IVLPIRF Stata 19’s command

Yesterday, Stata published a spotlight blog on instrumental-variable local projection impulse-response functions built around the ivlpirf command. The point is important. Local projections are already widely used in…

Geopolitical Turning Points and Macroeconomic Volatility: Relevance, Anticipation, and Exclusion (Honey, I think I found an instrument)

An important problem in empirical macroeconomics is that geopolitics can influence economics in the long run. Relations between major powers evolve endogenously with trade, growth, financial conditions, and…