Constructing independent evidence from regression and instrumental variables with an application to the effect of violent conflict on altruism and risk preference
Abstract
To provide an unbiased estimate, a regression analysis depends, among other things, on there being no unmeasured confounding. Often, unmeasured confounding is thought to be possible, but not severe; leading to a secondary instrumental variables (IV) analysis. However, these two analyses are correlated. It is unclear how much independent evidence is provided by the IV analysis. We resolve this redundancy using a new estimator, which extracts the part of the regression estimator uncorrelated...