Instrumental variable regression
68 USD1. In the first theoretical part, please describe the main issue and the method at hand including a critical assessment of the method, 5 pages (12 pt, 1.15 spacing, Arial), 5 sources.
2. In the second part, present an application of the method in any economics-related topic including a literature review, 10 pages (12 pt, 1.15 spacing, Arial), 20 sources.
Once there is endogeneity, e.g. reverse causality, one can use the variation of a variable that is correlated with the endogenous variable, but not affected by the dependent variable.
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