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Proxy variable methods are among the leading techniques designed to remedy endogeneity in applied research. However, the method eliminates endogeneity under restrictive assumptions that often make it impractical. I show that the proxy method is useful under weaker assumptions. Given assumptions...
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instrumental variables that are assumed to be uncorrelated with unobservables. We instead assume (i) the correlation between the … instrument and the error term has the same sign as the correlation between the endogenous regressor and the error term, and (ii …
Persistent link: https://www.econbiz.de/10003822978
instrumental variables that are assumed to be uncorrelated with unobservables. We instead assume (i) the correlation between the … instrument and the error term has the same sign as the correlation between the endogenous regressor and the error term, and (ii …
Persistent link: https://www.econbiz.de/10003739684
instrumental variables that are assumed to be uncorrelated with unobservables. We instead assume (i) the correlation between the … instrument and the error term has the same sign as the correlation between the endogenous regressor and the error term, and (ii …
Persistent link: https://www.econbiz.de/10012464213
used to design a panel cointegration test statistic accounting for cross-section dependence. The performance of the …
Persistent link: https://www.econbiz.de/10012010208
instrumental variables that are assumed to be uncorrelated with unobservables. We instead assume (i) the correlation between the … instrument and the error term has the same sign as the correlation between the endogenous regressor and the error term, and (ii …
Persistent link: https://www.econbiz.de/10013311948
There are simple well-known conditions for the validity of regression and correlation as statistical tools. We analyse …
Persistent link: https://www.econbiz.de/10009767620
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