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st: re: other ways of dealing with endogeneity other than IV?


From   Kit Baum <baum@bc.edu>
To   statalist@hsphsun2.harvard.edu
Subject   st: re: other ways of dealing with endogeneity other than IV?
Date   Tue, 6 May 2008 13:39:05 -0400

Nicola said

you may choose, depending on your data, between using a fixed effect model, ...


A fixed effects model is an OLS regression with a dummy variable for each unit in the panel. It does not deal with endogeneity in any form. If the regression on one unit in the panel is plagued with endogeneity, the fixed effects model will be as well. FE models deal with unobserved heterogeneity, not endogeneity.


Kit Baum, Boston College Economics and DIW Berlin
http://ideas.repec.org/e/pba1.html
An Introduction to Modern Econometrics Using Stata:
http://www.stata-press.com/books/imeus.html

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