Estimation and exclusion restrictions in clustered linear models

Fuente: arXiv
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Hauptverfasser: Mikusheva, Anna, Sølvsten, Mikkel, Jing, Baiyun
Format: Preprint
Veröffentlicht: 2025
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author Mikusheva, Anna
Sølvsten, Mikkel
Jing, Baiyun
author_facet Mikusheva, Anna
Sølvsten, Mikkel
Jing, Baiyun
contents We study linear regression models with clustered data, high-dimensional controls, and intricate exclusion restrictions. We propose a correctly centered internal instrument IV estimator that accommodates a broad class of exclusion restrictions and allows within-cluster dependence. The estimator admits a simple leave-out interpretation and is computationally tractable. We derive a central limit theorem for the associated quadratic form and propose a robust variance estimator. We also develop identification-robust inference procedures. Our framework extends dynamic panel methods to general clustered settings. We illustrate the approach in a large-scale fiscal intervention in rural Kenya, where spatial interference generates the exclusion-restriction pattern.
format Preprint
id arxiv_https___arxiv_org_abs_2508_12860
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Estimation and exclusion restrictions in clustered linear models
Mikusheva, Anna
Sølvsten, Mikkel
Jing, Baiyun
Econometrics
Methodology
We study linear regression models with clustered data, high-dimensional controls, and intricate exclusion restrictions. We propose a correctly centered internal instrument IV estimator that accommodates a broad class of exclusion restrictions and allows within-cluster dependence. The estimator admits a simple leave-out interpretation and is computationally tractable. We derive a central limit theorem for the associated quadratic form and propose a robust variance estimator. We also develop identification-robust inference procedures. Our framework extends dynamic panel methods to general clustered settings. We illustrate the approach in a large-scale fiscal intervention in rural Kenya, where spatial interference generates the exclusion-restriction pattern.
title Estimation and exclusion restrictions in clustered linear models
topic Econometrics
Methodology
url https://arxiv.org/abs/2508.12860