Linked Questions

Is there an even simpler way of explaining IV than described here? I was recently talking to my friend about my research and was wondering how to convey the intuition of instrumental variables to ...

I have inherited some data analysis code that, not being an econometrician, I am struggling to understand. One model runs an instrumental variables regression with the following Stata command ...

I'd like to see how not adjusting for confounders affects estimated coefficients in linear regression. Here is what my lecture notes say: Un-adjusted model: $E[Yi] = \beta_0 + \beta_1X_i$ Adjusted ...

I've had in the past a number of questions asked of me relating to published papers in a number of areas where regressions (and related models, such as panel models or GLMs) are used on observational ...

Reading "Econometrics" by Fumio Hayashi, from Princenton University Press, ISBN 0-691-01018-5, in page 13 by "Fixed Regressors" subtitle, it is stated: "We have presented the classical linear ...

Despite reading and conducting several practical examples with IV 2SLS, I am still uncertain how, specifically and mathematically, 2SLS is able to obtain a causal coefficient, β, of an assumed ...

Assume, the model we are trying to estimate is: $Y=\beta_ß+\beta_1X+U$ where x and u are correlated: $Cov(X,U)\neq 0$ Then OLS is inconsistent: $\beta_1^{OLS}=\frac{Cov(Y,X)}{Var(X)}=\frac{Cov(\beta_0+...

I'm reading a paper in which is used the following endogeneity test: First of all, we have the initial linear model: $$y = \beta_0 + \beta_1x_1 + \beta_2x_2 + \beta_3x_3 + e$$ $x_3$ is the ...

Summary: Correlations does not imply causation has became mainstream. I am interested in understanding what is required for the implication to actually take place. Detailed question: Simple case: ...

I am estimating a model with two survey questions, which I expect to be endogenous by 2SLS: $$ Outcome_i = B_0 + B_1SurveyQuestionA_i + B_2SurveyQuestionB_i + B_3Control + u$$ I have an instrumental ...

I'm reading a research article on the use of instrumental variable and lottery wins as a common example. The topic is using regression to investigate the impact of non-market outcomes on life ...

I am currently looking into the correlation between academic freedom (my independant variable) and university rankings (my dependant variable) using OLS. I find a negative significant correlation, but ...