Use Of Instrumental Variables Research Articles

The causal role of immune cells in primary Sjögren's syndrome: A two-sample Mendelian randomization.

Primary Sjögren's syndrome (pSS) is an autoimmune disease characterized by the destruction of exocrine glands primarily via T-cell-mediated B-cell over-activation and cytokine production. This leads to pronounced dryness of the mouth and eyes and can result in multi-systemic involvement affecting the kidneys, lungs, and blood. In recent years, there has been increasing attention on the role of immune cells in pSS. However, studies investigating the causal role of immune cells in pSS have been relatively limited. In this study, we employed a two-way two-sample Mendelian randomization approach to assess the causal relationship between immune cells and pSS. Utilizing publicly available genome-wide association study (GWAS) data, we explored the causal links between 731 immunophenotypically labeled immune cells and the risk of pSS. Through the use of instrumental variables derived from GWAS data and corrected for false discovery rate (FDR), we identified three immune cells with increased levels that were causally associated with pSS risk (FDR < 0.05). These included IgD+ CD38br AC B cells, CD27 on IgD+ CD38- unswitched memory B cells, and Granulocyte % leukocyte. Additionally, three immune cells with reduced levels were found to be causally associated with pSS risk, namely CD4+ CD8dim %lymphocyte, CD4+ CD8dim %leukocyte, and CD28 on activated and secreting regulatory T cells (Tregs). Furthermore, the development of pSS was associated with elevated levels of CD33br HLA DR+ CD14- % CD33br HLA DR+ in myeloid cells. This study demonstrates that immune responses influence the progression of pSS in a complex pattern. Our findings may provide new insights into the immunology of pSS pathogenesis and more experimental studies should be conducted to further explore the potential mechanisms between identified immune features and pSS risk, which may provide a basis for exploring early intervention methods for pSS and developing targeted therapeutic strategies or even reshaping immune homeostasis.

Sovereign ESG and Foreign Direct Investment in the GCC: The Amplifying Role of Trade Openness in Economic Diversification

This study examines the relationship between Sovereign Environmental, Social, and Governance (SESG) initiatives and foreign direct investment (FDI) within the context of the Gulf Cooperation Council (GCC) countries from 2000 to 2022. The research explores how national ESG performance influences the attractiveness of these countries to foreign investors, with a particular focus on the moderating role of trade openness. Using a comprehensive panel data analysis, the study finds that strong SESG frameworks are positively correlated with higher FDI inflows, with trade openness amplifying the positive impact of SESG. Additionally, the use of Instrumental Variables (IV) estimation addresses endogeneity concerns, further confirming the robustness of the results. Moreover, the analysis reveals that trade openness amplifies the positive impact of SESG on FDI, suggesting that GCC countries with liberal trade policies and robust ESG practices are more successful in attracting sustainable and responsible investments. These findings contribute to the growing body of literature on ESG and FDI, offering valuable insights for policymakers seeking to enhance economic growth through strategic investments in sustainability and governance. The findings offer valuable insights for policymakers in aligning SESG frameworks with global ESG standards and leveraging global liquidity conditions to enhance FDI inflows, particularly in light of ongoing economic diversification efforts in the GCC.

Domestic Demand and Export Performance in CEMAC: An Assessment with Endogeneity-related Model

Based on several alternative approaches there is by now some evidence suggesting that there is a negative relationship between exports and domestic sales. But in the majority of cases this regularity has focused on industrialized countries. While the external trade of African countries faces numerous challenges, with the low level of intra regional trade and the concentration of exports in some raw materials. Thus the aim of this paper to assess this new export channel for African countries. We then estimate a dynamic panel model with an error correction mechanism of the export market share (the difference between exports and foreign demand) for the six economies of the CEMAC zone between 1974 and 2021. Through the use of instrumental variables (2SLS) we address the role of endogeneity. According to the results, such link is prominent for African countries such the CEMAC countries where domestic demand impacts effectively negatively exports in CEMAC with a negative elasticity of around 53 %. When allowing for an asymmetric relationship between domestic sales and exports the results remain unchanged suggesting that a significant relationship between domestic demand and exports performance still holds.

CFO co-option and dividend payments: the moderating role of CFO talent

Purpose This study aims to investigate the association between the co-option of the chief financial officer (CFO) and dividend payments, assessing whether the talent of the CFO affects this association. Design/methodology/approach The empirical analyses were based on hand-collected data for 922 firm-year observations from 157 European listed firms, during the period 2013–2019. Empirical models, based on a two-step estimation procedure, involved the use of instrumental variables and the generalised moment method. Findings The results show that CFO co-option is negatively associated with the level of dividend payments. It was also found that the degree of CFO talent moderates the negative association between CFO co-option and dividend payments. Research limitations/implications This investigation responds to the call for literature which examines how chief executive officer (CEO) – CFO relationships influence firms’ policies and outcomes. The study offers novel evidence for the individual-level characteristics of CFOs which are likely to reduce the effectiveness of CEO power and increase monitoring on corporate decisions on dividends. Practical implications The study sheds light on the effect of the interactions between CEOs and CFOs, which are important for investors’ expectations. In this regard, investors may be interested in the CFO profiles which may reduce CEO power over dividend policies. Originality/value Unlike previous research, which focused on CEOs, the authors are the first to shed light on the role of CFOs as key decision makers in influencing the dividend policies in modern corporations.

Correcting Regressor-Endogeneity Bias via Instrument-Free Joint Estimation Using Semiparametric Odds Ratio Models

Endogenous regressors can lead to biased estimates for causal effects using methods assuming regressor–error independence. To correct for endogeneity bias, the authors propose a new method that accounts for the regressor–error dependence using flexible semiparametric odds ratio conditional models; the approach requires neither parametric distributional assumptions nor tuning parameters for modeling endogenous regressors’ distributions conditional on the error term and exogenous regressors. Inference is achieved via optimizing the profile likelihood concentrating on the parameters of interest. The proposed approach requires no use of instrumental variables (IVs), observed or latent, that must satisfy the stringent condition of exclusion restriction. Nonnormally distributed endogenous regressors are required for model identification with a normal error distribution. The approach's flexibility in capturing regressor–error dependence increases the capability of IV-free endogeneity correction and provides opportunities to improve the accuracy of causal effect estimation. Unlike existing IV-free methods, the proposed approach can handle discrete endogenous regressors with few levels, such as binary regressors or count regressors with small means, and is thus applicable to a plethora of applications involving such regressors. The authors demonstrate the versatility of the approach for binary, count, and continuous endogenous regressors using comprehensive simulation studies and empirical data.

Approaches To The Factors Involved In The Economic And Productive Performance Of Dairy Farmas In The Pampas Region

Bovine milk production is carried out in complex productive systems that require constant monitoring of the factors that question them. Likewise, the sector needs to understand the stagnation of annual production at the national level, characterized by a drop in the number of establishments and herds, and a progressive productive efficiency. This entails the study of the determinants of both the economic (EP) and productive (PP) performance of the establishments, what could allow them to improve their competitiveness and, together with other exogenous factors, collaborate to overcome this prolonged stage of productive stability. Starting from a typology of dairy farms in the Pampas Region, the behavior of variables (profitability, cost of production and productivity of the land) and their interrelationship are analyzed. Finally, flexible econometric models that approximate the estimation of the economic and productive performance of the systems under study are formed and analyzed, based on factors that may be decisive for their evolution. The best models resulted from those that used synthetic variables (principal components) as inputs, compared to those that made us and selection of system-specific variables, correcting problems of multicollinearity. The use of instrumental variables could contribute to the resolution of the multicausality present among the factors of the models analyzed.

Structural adjustment and the political economy of capital flight

The financial haemorrhaging of lower income countries in the form of capital flight is a leading cause of global economic inequality. On an annual basis, trillions of dollars bypass the already starved fiscal spaces of nations mired in poverty, making their way instead to lucrative offshore bank accounts governed by secrecy jurisdictions. The present article relates this phenomenon to the institutional architecture of the global financial system and provides causal evidence that structural adjustment programmes implemented at the behest of international financial organizations amplify such capital flight. In particular, by isolating exogenous variation in policy conditionalities through the use of instrumental variables, we find that trade liberalization, financial sector reforms and privatization measures mandated by the International Monetary Fund in developing contexts substantially increase financial outflows occurring via current and capital account transactions. Our findings thus document the contribution that structural adjustment makes to an underappreciated facet of contemporary global inequality.

Economic Analysis of the Effect of Social Capital on Food Security Status of Micro-Credit Households in Ekiti State Nigeria

This study examined the effects of social capital on food security status of microcredit households in Ekiti-state, Nigeria. Multi-stage sampling procedure was used in selecting the sample for the study. The data for the study were collected by using a well-structured questionnaire from three hundred and eighty-six microcredit households in Ekiti-state. The data were analysed using descriptive, Foster, Greer and Thorbecke measure and probit regression model. The result showed that the average age of the sampled heads of households was 47.3years. Average years of formal education and size of households in the study area were about 6.8 years and 7 persons respectively. The results of the social capital dimensions in the study area showed that the average membership density index was 37.25% while decision making participation index was 61.44%. Heterogeneity and meeting attendance indices were 52.89% and 45.02% respectively. Cash and labour indices were 40.42% and 21.18% respectively. The mean social capital value was 12.10%. The results of the probit regression showed that age, age squared, household size, occupation, years of formal education, membership density, decision making participation, meeting attendance and heterogeneity indices of households significantly influenced food security. The use of instrumental variables led to an increase in the value of adjusted from 0.3760 to 0.3996 relative to the use of the real social capital index. It is recommended that policy that will make households (particularly food insecure ones) participate in associations should be formulated.

The spatial scope of agglomeration economies in Brazil

AbstractThis paper provides evidence about location and colocation patterns of manufacturing entrepreneurship and spatial scope of agglomeration economies in the context of a developing country. Using microgeographic data for all Brazilian manufacturing activities and distance‐based measures, we find clear patterns of colocalization between entrants and existing establishments, and that these patterns occur mainly at short distances. For activities presenting colocalization between entrants and existing establishments, our results also indicate that a greater number of incumbent establishments in a given location positively affects the number of entrant establishments that decide to locate there, an effect that attenuates rapidly with distance (generally disappearing after 5 km). This pattern of attenuation is robust to both the inclusion of a comprehensive set of controls for observable and unobservable local characteristics and the use of instrumental variables to address remaining endogeneity concerns.

Common methodological mistakes

For scientific discoveries to be valid—whether in theory or empirically—a phenomenon must be accurately described: The scientist must use appropriate counterfactuals and eliminate competing explanations. Empirical work must also use an appropriate design and method, and empirical claims made about the phenomenon must be correctly characterized. Moreover, valid empirical discoveries must be reliable in the sense that scientists who reexamine the data must be able to reproduce the finding or to replicate the effect from data gathered in a similar context. Only discoveries adhering to the above criteria can be scientifically informative, serve as building blocks for theory, or have policy implications. Unfortunately, as several recent surveys of the literature show, much of the published works in the management and applied psychology fields are uninformative; contributing reasons include several intractable problems in the study design and analysis as well as the failure of the field to adopt open science practices. Against this backdrop, we identify common methodological mistakes made in applied work. We group these mistakes into three major categories: (a) study design and data collection (e.g., fit between hypotheses and methods, design, measurement, open science, literature reviews), (b) data analysis (e.g., data preprocessing, choice of estimators, analysis of data, issues concerning endogeneity, and use of instrumental variables), and (c) diagnostics, inferences, and reporting. We also explain how to avoid these issues, so that published work makes for a useful contribution to the scientific record.

Research on Managerial Overconfidence, Corporate Financial Risk and Corporate Surplus Management

Based on the data of A-share listed companies in Shanghai and Shenzhen from 2008 to 2018, this paper investigates the impact of corporate financial risk on corporate surplus management and further tests the heterogeneous role of power concentration and overconfidence on corporate financial risk through heterogeneity analysis. The empirical findings show that (i) all else being equal, corporate financial risk has a significant contribution to corporate surplus management, i.e., an increase in corporate financial risk causes firms to engage in surplus management behavior; further heterogeneity analysis results show that (ii) all else being equal, overconfident firms have an inhibitory effect on the positive relationship between financial risk and surplus management. In addition, the paper finds that the previous findings remain robust through lagged variable regressions, the use of instrumental variables and the replacement of different measures of surplus management. Finally, the paper combines the findings with corresponding policy recommendations and insights.

Vertical taxing rights and tax compliance norms

This paper investigates the effects of multi-layer tax arrangements on tax compliance norms and behaviours of individuals in 49 Latin American and African countries. To date, the literature on tax compliance predominantly portrays the government-taxpayer relationship as bilateral. In practice, however, taxpayers have multiple payment obligations and often towards more than one tier of government. This paper argues for the consideration of multi-level tax arrangements in cross-country empirical enquiries on tax compliance norms and behaviours. It draws from the existing literature to posit that the vertical decision structure on tax matters by different government layers could influence tax compliance through, for instance, altering enforcement parameters, affecting compliance costs or shaping the fiscal exchange between citizens and the State through elements of trust, perception of public accountability and redistribution, and public utility. The empirical findings suggest that assigning taxing rights and discretionary powers on tax administration to subnational governments lower tendencies of compliance. The paper confirms the overarching hypothesis that inter-governmental tax arrangements matter for understanding tax compliance norms. The results are robust to multiple specifications, including the use of instrumental variables to address endogeneity concerns.

Does Smartphone Use Improve the Dietary Diversity of Rural Residents? Evidence from Household Survey Data from 5 Provinces.

The use of smartphones has profoundly changed the consumption patterns and living conditions of rural residents, but there is little research on how smartphone use affects the food consumption patterns of rural residents. This paper uses survey data from 1047 farmers from five Chinese provinces in 2020 to investigate the impact of smartphone use on the dietary diversity of rural residents, the underlying mechanism, and the corresponding group-level heterogeneity. The study finds that smartphone use has a significantly positive effect on the dietary diversity of rural residents and that the dietary diversity scores of rural residents who use smartphones to access the internet are a significant 4.2% higher than those of rural residents who do not. The results are robust to the use of instrumental variables and propensity score matching to account for potential endogeneity. The income effect and the transaction cost effect are the two mechanisms by which smartphone use improves the dietary diversity of rural residents. Compared with elderly residents and members of low-income households, young and middle-aged people and members of high-income households are more likely to use smartphones to improve their dietary diversity. The following recommendations for further improving the dietary diversity of rural residents are made: continue to increase the internet penetration rate and smartphone coverage rate in rural areas, conduct public welfare lectures on smartphone usage and nutrition and health knowledge, and improve the e-commerce distribution infrastructure in rural areas.

Robot adoption and export performance: Firm-level evidence from Spain

Export activities are crucial for firm performance. Existing evidence shows that technology adoption is an essential determinant of firm competitiveness. Nevertheless, scarce attention has been devoted to robotisation, a new technology that firms increasingly adopt. We investigate the effect of robot adoption on the intensive and extensive margins of exports of Spanish manufacturing firms over the period 1990–2014. We combine the propensity score matching (PSM) and difference in differences (DID) techniques and find that firms adopting robots experience a sharp increase in their export probability, export sales and share of exports in total output. This result persists after a wide array of robustness checks, including the use of instrumental variables. Robot adoption favours export entry and survival and fosters the export activity of intermediate goods’ producers. The positive impact of robot adoption on exports is driven by its positive effect on firm total factor productivity, product innovation and importing.

RETRACTED: A Study on the Participation of Peasants in Rural Environmental Improvement From the Perspective of Sustainable Development

Peasants are producers and the direct stakeholders of rural environmental problems, and also the core subject of the comprehensive rural ecological improvement. However, in the current mode of rural environmental governance, the government takes the dominant role, with low participation of peasants. Based on the representative micro-survey data of China, and from the perspective of the psychosocial effects of the peasants’ self-identification, this research made use of instrumental variables and generalized structural equation mode (GSEM) to explore the reason behand this phenomenon. The research shows that, first, at present Chinese peasants have a low degree of self-identification, and self-identification has a remarkable and positive stimulating effect on the participation of peasants in rural ecological improvement; second, heterogeneity analysis shows that self-identification is a stronger incentive for peasant groups with female offspring and rural families with relatively higher incomes in the participation of rural environmental improvement, and is a less remarkable incentive for rural families with relatively low incomes; and third, the mediation model results indicate that social fairness and social capital are important mediating paths with which self-identification influences the participation of peasants in rural environmental improvement, and the exertion of the stimulating effect of self-identification on the participation in rural environmental improvement is inseparable from the coordination and integration of the perception effect of peasants as the behavioral subject in terms of social fairness, and is still more inseparable from the support of corresponding social capital. What we’ve discovered means that the enhancement of self-identification of peasants by strengthening the construction of public cultural services and cultural guidance in rural area is the crucial element to motivate the peasants to participate in rural environmental improvement so as to realize sustainable rural development.

Social media, education, and the rise of populist Euroscepticism

This paper studies how the diffusion of skeptical or negative attitudes towards the European Union (EU) and the process of European integration relates to the new technologies of political communication, education, and their interaction. Using both European-wide and national surveys, we find a strong relationship between exposure to online political activity and Euroscepticism only among individuals with lower formal education. When distinguishing between different forms of online political activity it also finds that it is not the use of the internet per se that matters, but the specific use of social networks, like Twitter or Facebook, for obtaining information about politics. These results turn out to be robust to the use of instrumental variables intended to capture the speed of connection available and the relative easiness of using internet and social media.

Impact of the Belt and Road Initiative on environmental quality in countries along the routes

China has adhered to the concept of green development since the introduction of the Belt and Road Initiative in 2013. However, as the initiative continues to advance, speculations have been raised on the possibility of its reduction of the environmental quality of the countries along the routes. So, has the seven-year-old Belt and Road Initiative reduced the environmental quality of these countries and how does it affect the environmental quality? To address these issues, this study conducted a quasi-natural experiment, based on the WDI 2005－2017 data, the human development index database of the World Bank and the OECD (Organization for Economic Cooperation and Development) database. A country-year panel data was constructed using the difference-in-differences model to assess the countries along the‘area’initiative for environmental effects, and to further examine the heterogeneity and the policy effect mechanism. The main conclusions were as follows: ① The Belt and Road Initiative had significantly improved the environmental quality of countries along the routes. The conclusions remained robust after the introduction of the placebo test, the use of instrumental variables to alleviate possible endogenous problems and a series of other robustness tests. ② The results of heterogeneity analysis showed that the Belt and Road Initiative exerted a greater effect on the countries with lower environmental quality than those with higher quality in terms of environmental improvements. ③ Mechanism analysis showed that the Belt and Road Initiative improved the environmental quality of countries along the routes by promoting technological progress and strengthening environmental regulation, but it failed to significantly improve the environmental quality of these countries by promoting clean energy structure and industrial structure and increasing the scale effect. Therefore, China should continue to vigorously promote the concept of developing a green Belt and Road, expand the coverage of the green Belt and Road, improve the level of clean energy structure of the Belt and Road countries through investment and cooperation, and promote the clean transformation of their industrial structure. These findings provide empirical evidence and implications for the better promotion of the green Belt and Road Initiative, and have certain reference value for the follow–up implementation of the Belt and Road Initiative.

Digital Inclusive Finance, Multidimensional Education, and Farmers’ Entrepreneurial Behavior

Scarce financial supply and low education level are important factors that inhibit the entrepreneurial behavior of rural residents in China. Based on the Static Career Choice Model, this paper matches the 2016 China Household Finance Survey (CHFS) micro-data with the Peking University Digital Financial Inclusive Index of the previous years to empirically test the impact of digital financial inclusion and academic education, tacit knowledge, and Internet learning on farmers. The direct influence and linkage effect of entrepreneurial behaviors revealed that digital financial inclusion and multidimensional education could significantly promote farmers’ entrepreneurial choices. Digital financial inclusion can relieve the constraints of insufficient academic education on farmers’ entrepreneurial choices, partially replace the tacit knowledge for rural residents, and improve the efficiency of Internet learning, which ultimately enhances the entrepreneurial behavior choices of the farmers. Our results are still significant and robust with respect to the sample data, explained variables, and estimation methods. We also consider the use of instrumental variables to overcome the potential endogeneity issues. Through comparative analysis of different regions, it is found that the performance is particularly obvious in the eastern region.

Addressing the issue of bias in observational studies: Using instrumental variables and a quasi-randomization trial in an ESME research project.

PurposeObservational studies using routinely collected data are faced with a number of potential shortcomings that can bias their results. Many methods rely on controlling for measured and unmeasured confounders. In this work, we investigate the use of instrumental variables (IV) and quasi-trial analysis to control for unmeasured confounders in the context of a study based on the retrospective Epidemiological Strategy and Medical Economics (ESME) database, which compared overall survival (OS) with paclitaxel plus bevacizumab or paclitaxel alone as first-line treatment in patients with HER2-negative metastatic breast cancer (MBC).Patients and methodsCausal interpretations and estimates can be made from observation data using IV and quasi-trial analysis. Quasi-trial analysis has the same conceptual basis as IV, however, instead of using IV in the analysis, a “superficial” or “pseudo” randomized trial is used in a Cox model. For instance, in a multicenter trial, instead of using the treatment variable, quasi-trial analysis can consider the treatment preference in each center, which can be informative, and then comparisons of results between centers or clinicians can be informative.ResultsIn the original analysis, the OS adjusted for major factors was significantly longer with paclitaxel and bevacizumab than with paclitaxel alone. Using the center-treatment preference as an instrument yielded to concordant results. For the quasi-trial analysis, a Cox model was used, adjusted on all factors initially used. The results consolidate those obtained with a conventional multivariate Cox model.ConclusionUnmeasured confounding is a major concern in observational studies, and IV or quasi-trial analysis can be helpful to complement analysis of studies of this nature.

Testing regional intergovernmental transfers effects in Uruguay

Using an unbalanced panel of 18 Uruguayan regional governments from 1991 to 2017, we explore the hypothesis of flypaper and asymmetrical effects on the regional public expenditures. Specifically, the flypaper hypothesis states that the propensity of sub-national governmental units to spend intergovernmental unconditional transfers is higher than the propensity to spend on the demand for regional public services by local private agents. The application of panel data techniques with the use of instrumental variables highlights the presence of sizeable flypaper effect but not asymmetry ones. Our estimations also identify that political economy factors play an important role in the regional budgeting processes in Uruguay. This paper contributes to the scarce empirical evidence about the effects of unconditional central government transfers on subnational finances for middle-income countries.