Dear Statalist,
I have a fairly simple doubt, forgive me if it's rather basic, but I was wondering if you could clear something for me. When we have reverse causality (as a result of Endogeneity), how does this affect the standard errors? Are they overestimated? Does it depend on the sign of the bias?
More concretely, I have a simple regression where 2 variables influence one another in an upwards bias way, and I was wondering up to what extent can I still use my results (since I'm not really using the coefficient values, only if they are significant or not). Since my coefficients will be overestimated, will the t-stat also be overestimated, and thus my variables be "overly significant", so to speak?
I've tried to search for some references on this matter but I didn't find much to go from except that "endogeneity affects and biases estimates".
Any help you could give me, I would be beyond grateful.
Merci,
Anthoine
Related Posts with Effect of Endogeneity on Significance
Creating tablesHi all, I have this regression line, and I would like to export this table from STATA to word. Cod…
Question on Analysis using Panel Data Methodology.My study is the study of Bilateral trade relations: A Gravity Model analysis using Panel Data method…
Number of IDs per groupHi all, I have panel data with an identifier(permno) and a time variable(mofd, monthly). Based on a…
Finding if a variable or string has overlapping charactersLet's say we have variable/string 'alex' 'luth' 'tex' , 'mav' is there a command in stata which let…
Number of IDs per groupHi all, I have panel data with an identifier(ID) and a time variable(mofd, monthly). Based on a cha…
Subscribe to:
Post Comments (Atom)
0 Response to Effect of Endogeneity on Significance
Post a Comment