Dear Colleagues,
I wonder if you could give me tips on how should I
deal with an endogenous dummy variable.
What I'm thinking is to run using OLS, say:
y = a + bX + dD + e
where D= 0|1 is the endogenous dummy variable.
Or, does this sound more like a selection problem
(where I can split the sample into two) ?
Thank's in advance.
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