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Journal article
Exogenous Treatment and Endogenous Factors: Vanishing of Omitted Variable Bias on the Interaction Term
Journal of econometric methods, v 5(1), pp 71-77
01 Jan 2016
Abstract
Whether interested in the differential impact of a particular factor in various institutional settings or in the heterogeneous effect of policy or random experiment, the empirical researcher confronts a problem if the factor of interest is correlated with an omitted variable. This paper presents the circumstances under which it is possible to arrive at a consistent estimate of the mentioned effect. We find that if the source of heterogeneity and omitted variable are jointly independent of policy or treatment, then the OLS estimate on the interaction term between the treatment and endogenous factor turns out to be consistent.
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132 citations in Scopus
Details
- Title
- Exogenous Treatment and Endogenous Factors: Vanishing of Omitted Variable Bias on the Interaction Term
- Creators
- Olena Y. Nizalova - Institute for the Study of LaborIrina Murtazashvili - Kyiv School of Economics
- Publication Details
- Journal of econometric methods, v 5(1), pp 71-77
- Publisher
- De Gruyter
- Number of pages
- 7
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Scopus ID
- 2-s2.0-85126388195
- Other Identifier
- 991019173729804721