On the interpretation of instrumental variables in the presence of specification errors: a reply
journal contributionposted on 04.07.2017, 10:33 by P. A.V. B. Swamy, Stephen G. Hall, George S. Tavlas, Peter von zur Muehlen
[First paragraph] We appreciate the effort and thoughtfulness of Burkhard Raunig’s attempted critique of Swamy et al. (2015). As we show below, however, it is based on a misunderstanding of the distinction between simultaneous and recursive modeling.