Simultaneous Equations with Error Components

Badi Baltagi

Chapter Chapter 7 in Econometric Analysis of Panel Data, 2021, pp 157-186 from Springer

Abstract: Abstract Endogeneity of the right-hand regressors is a serious problem in econometrics. By endogeneity, we mean the correlation of the right-hand-side regressors and the disturbances. This may be due to the omission of relevant variables, measurement error, sample selectivity, self-selection, or other reasons. Endogeneity causes inconsistency of the usual OLS estimates and requires instrumental variable (IV) methods like two-stage least squares (2SLS) to obtain consistent parameter estimates.

Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Simultaneous equations with error components (1981)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-030-53953-5_7

Ordering information: This item can be ordered from
http://www.springer.com/9783030539535

DOI: 10.1007/978-3-030-53953-5_7

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().