Instrumental variable analysis for non-linear endogenous variable
Posted by PhD Student, at economics.stackexchange.com,
I have a model of the form $$y_i = ax_{1i} + bx_{1i}^2 + cx_{3i} + \varepsilon_i$$ Where $x_1$ is an endogenous variable. Would…
I have a model of the form $$y_i = ax_{1i} + bx_{1i}^2 + cx_{3i} + \varepsilon_i$$ Where $x_1$ is an endogenous variable. Would…
I am working with industry level data and trying to solve an issue with omitted variables bias, by using an instrument. The…
I have the following outcome (second-stage) equation: $$y = \beta_0 + \beta_1w + \beta_2x + \beta_3w x + \cdots$$ $y$, $w…