Endogeneity problem occurs due to simultaneous causality between the dependent and endogenous variables in a model, leading to biased and inconsistent estimations. This article explores the origins, implications, and methods to address endogeneity in econometric models.
An in-depth look into Instrumental Variables (IV) and their role in addressing endogeneity in statistical models.
The J-TEST is used in the context of the Generalized Method of Moments (GMM) to test the validity of overidentifying restrictions. It assesses if the instrumental variables are correctly specified and consistent with the model.
Understanding Predetermined Variables in Dynamic Econometric Models, their Importance, and Applications
A comprehensive article on Two-Stage Least Squares (2SLS), an instrumental variable estimation technique used in linear regression analysis to address endogeneity issues.
Two-Stage Least Squares (2SLS) is an instrumental variable estimation method used in econometrics to address endogeneity issues. It involves two stages of regression to obtain consistent parameter estimates.
