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Endogeneity bias modeling using observables

Galvao Jr, A. F., Montes-Rojas, G. and Song, S. (2017). Endogeneity bias modeling using observables. Economics Letters, 152, pp. 41-45. doi: 10.1016/j.econlet.2016.12.021


This paper proposes an alternative solution to the endogeneity problem by explicitly modeling the joint interaction of the endogenous variables and the unobserved causes of the dependent variable as a function of additional observables. We derive identification of the parameters, develop an estimator, and establish its consistency and asymptotic normality.

Publication Type: Article
Additional Information: publisher: Elsevier articletitle: Endogeneity bias modeling using observables journaltitle: Economics Letters articlelink: content_type: article copyright: © 2016 Elsevier B.V. All rights reserved.
Publisher Keywords: Endogeneity; Instrumental variables; Proxy variables
Subjects: H Social Sciences > HB Economic Theory
Departments: School of Arts & Social Sciences
Date available in CRO: 08 Feb 2017 10:50
Date deposited: 8 February 2017
Date of acceptance: 15 December 2016
Date of first online publication: 29 December 2016
Text - Accepted Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

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