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Letís Take the Bias Out of Econometrics

Listed author(s):
  • Duo Qin

    ()

    (Department of Economics, SOAS, University of London, UK)

Registered author(s):

This study exposes the specious quality of ëendogeneity biasí. It reviews how conceptualisation of the bias has evolved to embrace all major econometric problems, despite extensive lack of hard evidence. It reveals the crux of the bias ñ a priori rejection, as conditionally invalid, of explanatory variables in causal postulates of interest, and of the bias correction by consistent estimators ñ modification of those variables by non-uniquely and non-causally generated regressors. It demonstrates cognitive flaws in this estimator-centred approach and highlights the need to shake off the bias to let statistical learning play an active role in designing causally faithful models.

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File URL: https://www.soas.ac.uk/economics/research/workingpapers/file117753.pdf
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Paper provided by Department of Economics, SOAS, University of London, UK in its series Working Papers with number 192.

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Length: 36
Date of creation: Sep 2015
Handle: RePEc:soa:wpaper:192
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Web page: http://www.soas.ac.uk/economics/

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  1. Angus Deaton, 2010. "Instruments, Randomization, and Learning about Development," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 424-455, June.
  2. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, American Economic Association, vol. 80(3), pages 313-336, June.
  3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, January.
  4. Qin, Duo, 2015. "Resurgence of the endogeneity-backed instrumental variable methods," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 9, pages 1-35.
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  12. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records: Errata," American Economic Review, American Economic Association, vol. 80(5), pages 1284-1286, December.
  13. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  14. Heckman, James J, 1976. "A Life-Cycle Model of Earnings, Learning, and Consumption," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 11-44, August.
  15. Qin, Duo, 2013. "A History of Econometrics: The Reformation from the 1970s," OUP Catalogue, Oxford University Press, number 9780199679348.
  16. Joshua D. Angrist & Alan B. Keueger, 1991. "Does Compulsory School Attendance Affect Schooling and Earnings?," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 979-1014.
  17. Hendry, David F., 1995. "Dynamic Econometrics," OUP Catalogue, Oxford University Press, number 9780198283164.
  18. Heckman, James J, 1996. "Randomization as an Instrumental Variable: Notes," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 336-341, May.
  19. Francine D. Blau & Lawrence M. Kahn, 2007. "Changes in the Labor Supply Behavior of Married Women: 1980–2000," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 393-438.
  20. Epstein, Roy J, 1989. "The Fall of OLS in Structural Estimation," Oxford Economic Papers, Oxford University Press, vol. 41(1), pages 94-107, January.
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