Estimating the price elasticity of gasoline demand in correlated random coefficient models with endogeneity
内生相关随机系数模型中的汽油需求价格弹性估计
Summary We propose a per‐cluster instrumental variable (PCIV) approach for estimating linear correlated random coefficient models in the presence of contemporaneous endogeneity and two‐way fixed effects. This approach estimates heterogeneous effects and aggregates them to population averages. We demonstrate consistency, showing robustness over standard estimators, and provide analytic standard errors for robust inference. In Monte Carlo simulation, PCIV performs relatively…