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Instrumental variable estimation Instrumental variable estimation

Instrumental variable estimation - PowerPoint Presentation

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Uploaded On 2016-04-10

Instrumental variable estimation - PPT Presentation

Amine Ouazad Ass Professor of Economics Problemo OLS is plagued by the problem of omitted variables It is not a testable assumption remember the exercise An instrumental variable can circumvent the problem by providing us with an exogenous source of variation of the covariate ID: 277874

estimator stage ols regression stage estimator regression ols covariates variable instruments exogenous test instrument cov causal variables endogenous number

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