703 views

### linear causal model

Currently I’m focused on linear causal model expressed as a structural equation like this: $y = \beta_1 x_1 + \beta_2 x_2 + … + \beta_k x_k + u$ where $E[u|x_1,x_2,…,x_k]=0$ (exogenous error) we ...
• 4,636
183 views

174 views

### Endogeneity and Regression Interpretation: how does it work? is it possible?

My question is not particularly straightforward. I will explain my reasoning, and then give the question at the end to avoid any confusion. $\ Y_{i} = \beta_{0}+\beta_{1}X_{i}+\varepsilon_{i}$ ...
123 views

### simple linear regression causality

lets say we have a perfect linear regression, i.e. we have included all relevant variables (to prevent OVB: omitted variable bias), and also such that there is no other problems like mutli-...
• 143
308 views

### Random Sampling: Weak and Strong Exogenity

$Y \ = \ X' \beta \ + \ e$ Where $Y = (y_1, ..., y_n)$ and $\beta = (\beta_0,..., \beta_k)$. Why would Weak Exogenity under random sampling produce Strong Exogenity? I know that weak exogenity is ...
• 232
2k views

### OLS Assumption-No correlation should be there between error term and independent variable and error term and dependent variable

My question is that does endogeneity exists if there is correlation between dependent variable and error term, but not in between error term and independent variable. So for Ex, we know there should ...
412 views

### Structural equation and causal model in economics

Structural equations is a useful language for causal analysis in economics. In Causality Pearl (2009 cap 5) we can find the best discussion about this. My question: is possible to use the concept of ...
• 4,636
1 vote
Suppose there are two time series, $x_t$ and $y_t$, that capture daily counts of some sort. $x_t$ is believed to have causal impact on $y_t$. Suppose further that a simple regression is fit to the ...