Recently I attended a conference in which one of the authors was talking about the mechanical relationship between variables "X" and "Y" (I don't remember exactly the variables) and possible sources of endogeneity. I searched a lot on the net for the meaning of the mechanical relationship between two variables, but I found nothing. Can anybody help me out in this regard? It is much appreciated.
1 Answer
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This is an interesting question. I am not sure about the meaning of the "mechanical relationship". But, it seems that it is a sort of "mathematical" relationship. You can read more about this phrase and its relation to the endogeneity problem in the article below, for example (paragraph 2 below Table 2), if you are interested in Finance.
Ornelas, J. R. H., Da Silva, M. S., & Van Doornik, B. F. N. (2022). Informational switching costs, bank competition, and the cost of finance. Journal of Banking & Finance, 138, 106408.
Personally, I am looking for the opposite phrase of the "mechanical relationship"! Any comments?
