Are Instrumental Variables Really That Instrumental? Endogeneity Resolution in Regression Models for Comparative Studies
工具变量究竟有多必要?比较研究回归模型中的内生性处理
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…