Tagged Questions
1
vote
0answers
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Discussion about proxy- and instrument variables and endogeneity in the context of a multi equation model
Assume two equations
$Y_1 = X_1\beta_1 + X_2\beta_2 + U_1$
$Y_2 = X_1\alpha_1 + X_2\alpha_2 + U_2$
Further assume that $ \ U_1 = X_4 + E_1$ and $U_2 = X_4 + E_2$
with $ \ corr(Y_1,X_4)\ne 0, \ \ ...
2
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1answer
56 views
Are variables, which linear combination results in a endogenous variable, endogenous?
I'm a little bit confused....
Lets say I assume $x$ to be endogenous and I observe that
$x = a v_1 + b v_2 + c v_3$
so that $x$ can be expressed as the perfect linear combination of $v_1, v_2, ...
1
vote
1answer
264 views
How do I identify this simultaneous equations model?
I have the following model (which is in this form is not identifiable if the $y$'s are indeed endogenous):
(1) $y_1 = a_0 + a_1y_2 + a_2y_3 + \boldsymbol{Xa} + \boldsymbol{u}$
(2) $y_2 = b_0 + ...
2
votes
1answer
101 views
Endogeneity without correlation?
Is it, in general, possible that two variables are endogenous even if they are not correlated with each other at all?
