Nizalova, Olena, Murtazashvili, Irina (2016) Exogenous treatment and endogenous factors: vanishing of omitted variable bias on the interaction term. Journal of Econometric Methods, 5 (1). pp. 71-77. ISSN 2194-6345. E-ISSN 2156-6674. (doi:10.1515/jem-2013-0012) (KAR id:46746)
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| Official URL: https://doi.org/10.1515/jem-2013-0012 |
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Abstract
Whether interested in the differential impact of a particular factor in various institutional settings or in the heterogeneous effect of policy or random experiment, the empirical researcher confronts a problem if the factor of interest is correlated with an omitted variable. This paper presents the circumstances under which it is possible to arrive at a consistent estimate of the mentioned effect. We find that if the source of heterogeneity and omitted variable are jointly independent of policy or treatment, then the OLS estimate on the interaction term between the treatment and endogenous factor turns out to be consistent.
| Item Type: | Article |
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| DOI/Identification number: | 10.1515/jem-2013-0012 |
| Uncontrolled keywords: | heterogeneity; interaction term; omitted variable bias; random experiments; treatment effect |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: |
Divisions > Division for the Study of Law, Society and Social Justice > School of Social Policy, Sociology and Social Research > Personal Social Services Research Unit Divisions > Division for the Study of Law, Society and Social Justice > School of Social Policy, Sociology and Social Research > Centre for Health Services Studies Divisions > Division of Human and Social Sciences > School of Economics |
| Depositing User: | Olena Nizalova |
| Date Deposited: | 20 Jan 2015 10:21 UTC |
| Last Modified: | 29 Oct 2021 14:37 UTC |
| Resource URI: | https://kar.kent.ac.uk/id/eprint/46746 (The current URI for this page, for reference purposes) |
University of Kent Author Information
Nizalova, Olena.
| Creator's ORCID: |
 https://orcid.org/0000-0002-1704-2632
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