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