February 2013
Beginner
858 pages
31h 34m
English
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Chapter 7
Endogeneity in Empirical Corporate Finance1
Abstract
This chapter discusses how applied researchers in corporate finance can address endogeneity concerns. We begin by reviewing the sources of endogeneity—omitted variables, simultaneity, and measurement error—and their implications for inference. We then discuss in detail a number of econometric techniques aimed at addressing endogeneity problems, including instrumental variables, difference-in-differences estimators, regression ...
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