tag:blogger.com,1999:blog-6288862798546085706.post4870576664885745723..comments2024-02-08T03:39:11.256-05:00Comments on Econometrics By Simulation: Regression with Endogenous Explanatory VariablesFrancishttp://www.blogger.com/profile/16658586705916884436noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6288862798546085706.post-63672980584037240612014-02-27T09:44:16.181-05:002014-02-27T09:44:16.181-05:00Isn't the issue really the potential for hybri...Isn't the issue really the potential for hybrid seed use to be correlated with other SES-driven factors, such as access to better equipment, that also impact growth but currently reside in the residual? <br /><br />This violates the OLS residual orthogonality assumption, and will lead to biased estimates of the impact of rainfall (br) and hybrid seed use (bh), per the underlying covariance algebra.Michael (Shane) Tutwilerhttps://www.blogger.com/profile/02221269948954217954noreply@blogger.com