The dividend amount is in part based on the fund's recent performance, which could be otherwise related to economic outcomes in that year. Since it's also partly determined by older fund performance (average of past 5 years), performance from 5 years prior could be a reasonable instrument to improve causal identification.
The dividend amount is in part based on the fund's recent performance, which could be otherwise related to economic outcomes in that year. Since it's also partly determined by older fund performance (average of past 5 years), performance from 5 years prior could be a reasonable instrument to improve causal identification.