ARE INSTRUMENTAL VARIABLES REALLY THAT INSTRUMENTAL? ENDOGENEITY RESOLUTION IN REGRESSION MODELS FOR COMPARATIVE STUDIES

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)645-651
Journal / PublicationStatistica Sinica
Volume32
Issue numberOnline Special Issue
Publication statusPublished - 2022

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Abstract

We provide a justification for why, and when, endogeneity will not cause bias in the interpretation of the coefficients in a regression model. This technique can be a viable alternative to, or even used alongside, the instrumental variable method. We show that when performing any comparative study, it is possible to measure the true change in the coefficients under a broad set of conditions. Our results hold, as long as the product of the covariance structure between the explanatory variables and the covariance between the error term and the explanatory variables are equal, within the same system at different time periods or across multiple systems at the same point in time.

Research Area(s)

  • Bias, coefficients, comparative, econometric, endogeneity, experimental design, instrumental variable, regression model, time series analysis, quantitative methodology

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Full text of this publication does not contain sufficient affiliation information. The Research Unit(s) information for this record is based on the then academic department affiliation of the author(s).

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