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Everything about Control function (econometrics)
Statistical methods to correct for endogeneity problems
Control functions are statistical methods to correct for endogeneity problems by modelling the endogeneity in the error term. The approach thereby differs in important ways from other models that try to account for the same econometric problem. Instrumental variables, for example, attempt to model the endogenous variable X as an often invertible model with respect to a relevant and exogenous instrument Z. Panel analysis uses special data properties to difference out unobserved heterogeneity that is assumed to be fixed over time. Wikipedia →
🧭 Start here: a 6-step reading path
- Read the overview: Control function (econometrics)A 5-minute orientation
- Pick up a classic book: Quality controls, license transferability and the level of investmentThe most-reprinted book on the subject
- Read the landmark paper: Control Function Methods in Applied EconometricsCited 1,582 times
- Go sideways: Endogeneity (econometrics)A closely related topic
- Go sideways: Instrumental variablesA closely related topic
📖 Definitions
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🗂️ The subject at a glance
🏆 Landmark papers (most cited)
📚 Books worth reading
- 📕Quality controls, license transferability and the level of investmentKala Krishna · 2001
Ranked by number of editions on Open Library, a rough measure of how lasting a book is.
🔗 Related topics
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