Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Ridge regularization for Mean Squared Error Reduction in Regression with
  Weak Instruments   In this paper, I show that classic two-stage least squares (2SLS) estimates
are highly unstable with weak instruments. I propose a ridge estimator (ridge
IV) and show that it is asymptotically normal even with weak instruments,
whereas 2SLS is severely distorted and un-bounded. I motivate the ridge IV
estimator as a convex optimization problem with a GMM objective function and an
L2 penalty. I show that ridge IV leads to sizable mean squared error reductions
theoretically and validate these results in a simulation study inspired by data
designs of papers published in the American Economic Review.

27
The categories of this paper are: comp-gas
10
The categories of this paper are: q-bio
7
The categories of this paper are: hep-th
26
The categories of this paper are: bayes-an
3
The categories of this paper are: physics
17
The categories of this paper are: q-fin
5
The categories of this paper are: gr-qc
21
The categories of this paper are: adap-org
30
The categories of this paper are: q-alg
29
The categories of this paper are: funct-an
0
The categories of this paper are: hep-ph
20
The categories of this paper are: acc-phys
12
The categories of this paper are: nucl-th
15
The categories of this paper are: nucl-ex
4
The categories of this paper are: cond-mat
28
The categories of this paper are: alg-geom