Endogeneity
Please cite this item using this persistent URL
http://hdl.handle.net/11693/15202Collections
Advisor
Özcan, Kıvılcım Metin
Publisher
Bilkent University
Abstract
One of the core issues in the econometrics literature is the
endogeneity problem. Endogeneity occurs when observed variables are
correlated with unobserved factors. Endogeneity can arise as a result of
measurement error, autoregression with autocorrelated errors, simultaneity and
omitted variables. And, there are many methods such as instrumental variable,
BLP, control function and maximum likelihood approaches improved in order to
overcome this issue. In this study, the issue of endogeneity will be presented
and the tests to identify and the methods to solve the problem will be analyzed.