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Federal Reserve Bank of Dallas paper details weak instrument bias in impulse response estimators, favoring VARs over local projections
BIS Paper

Federal Reserve Bank of Dallas paper details weak instrument bias in impulse response estimators, favoring VARs over local projections

A new working paper from the Federal Reserve Bank of Dallas, authored by Daniel J. Lewis and Karel Mertens, details weak instrument bias in impulse response function (IRF) estimators.

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