Transcription of Dealing With and Understanding Endogeneity
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Dealing With and Understanding Endogeneity
Dealing with and Understanding Endogeneity Enrique Pinz n StataCorp LP. October 20, 2016. Barcelona (StataCorp LP) October 20, 2016 Barcelona 1 / 59. Importance of Endogeneity Endogeneity occurs when a variable, observed or unobserved, that is not included in our models, is related to a variable we incorporated in our model. Model building Endogeneity contradicts: I Unobservables have no effect or explanatory power I The covariates cause the outcome of interest Endogeneity prevents us from making causal claims Endogeneity is a fundamental concern of social scientists (first to the party). (StataCorp LP) October 20, 2016 Barcelona 2 / 59. Importance of Endogeneity Endogeneity occurs when a variable, observed or unobserved, that is not included in our models, is related to a variable we incorporated in our model. Model building Endogeneity contradicts: I Unobservables have no effect or explanatory power I The covariates cause the outcome of interest Endogeneity prevents us from making causal claims Endogeneity is a fundamental concern of social scientists (first to the party).
Dealing With and Understanding Endogeneity Enrique Pinzón StataCorp LP October 20, 2016 Barcelona (StataCorp LP) October 20, 2016 Barcelona 1 / 59
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