DeLuna, Xavier; Johansson, Per-Olov - In: Modelling and evaluating treatment effects in econometrics, (pp. 147-166). 2008
We show that in sorting cross-sectional data, the endogeneity of a variable may be successfully detected by graphically examining the cumulative sum of the recursive residuals. Moreover, the sign of the bias implied by the endogeneity may be deducible through such graphs. In general,...
