endogeneity

Motivation Endogeneity: When an explanatory variable (treatment) is correlated with the unobserved error term (e.g., due to omitted variables, measurement error, or simultaneity). Consequence: Standard regression (e.g., OLS) yields biased estimates.

Here’s a overview of instrument-free methods: Latent Instrumental Variable (LIV) Gaussian Copula (GC) The goal is for dealing with endogeneity when no external instruments are available. Motivation Finding good instruments is hard.