An Alternative Approach for Introducing Instrumental Variables Based on Ordinary Least Squares Omitted Variable Bias

Autor/in	Keefer, Quinn A. W.
Titel	An Alternative Approach for Introducing Instrumental Variables Based on Ordinary Least Squares Omitted Variable Bias
Quelle	In: Journal of Economic Education, 54 (2023) 1, S.94-101 (8 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
DOI	10.1080/00220485.2022.2144576
Schlagwörter	Least Squares Statistics; Economics; Economics Education; Computation; Statistical Bias; Multiple Regression Analysis + Suchen Sie Ihr Suchwort? Volkswirtschaftslehre; Wirtschaftskunde
Abstract	An alternative approach for introducing instrumental variables in econometrics courses is presented in this article. The method is based on the ordinary least squares omitted variable bias formula. The intuition for the approach capitalizes on students' understanding and intuition of omitted variables. Thus, if students understand omitted variable bias, they can understand instrumental variables. Furthermore, using omitted variable bias to derive the instrumental variables estimator clearly highlights the critical assumptions of instrumental variables. The author illustrates the proposed method mathematically and discusses the intuition in both simple and multiple regression cases. (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2024/1/01