1763统计中等multi partmedium
Which Proposed Instrument Is More Plausible?
题目
You want to estimate the causal effect of quote-update intensity on realized spread capture .
Candidate instrument A is a randomized gateway assignment decided by the exchange. Candidate instrument B is same-day order-flow imbalance, which also directly moves spread capture.
Which candidate is more plausible as an instrument, and what IV condition fails for the other one?
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你的答案
Plausible Instrument
Failed IV Condition