O'Reilly logo

Econometrics for Daily Lives, Volume II by Tam Bang Vu

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 7

Modeling Issues and Endogeneity

Touro shares an anecdote with us. His company sent him to China last week to carry out a study on demand for travel from Chinese residents. However, his colleagues in China warned him that China’s data have a great deal of measurement errors. He is wondering how we can control for this problem. Prof. Metric tells him not to worry, because we will discuss the issue this week. He says that upon finishing with this chapter, we will be able to:

1. Analyze several modeling issues in regression.

2. Explain cases when endogeneity occurs.

3. Detect endogeneity problems and perform the correction procedure.

4. Apply Excel tools into estimating the related models.

We will discuss the modeling issues first because ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required