Endogeneity bias modeling using observables

摘要

This paper proposes an alternative solution to the endogeneity problem by explicitly modeling the joint interaction of the endogenous variables and the unobserved causes of the dependent variable as a function of additional observables. We derive identification of the parameters, develop an estimator, and establish its consistency and asymptotic normality. (C) 2016 Elsevier B.V. All rights reserved.