Test of Endogenity - A Memo

Posted: 6 Apr 2011

See all articles by Letenah Ejigu Wale

Letenah Ejigu Wale

Panjab University - University Business School; Bahir Dar University - Department of Accounting

Date Written: April 5, 2011

Abstract

The purpose of this memo is to inform beginner applied researchers one critical assumption of Ordinary Least Square (OLS) called endogenity of regressors. This assumption is often overlooked by applied researchers in their study and we try to spell out what is this assumption, how one can detect it and the possible solutions.

Suggested Citation

Wale, Letenah Ejigu, Test of Endogenity - A Memo (April 5, 2011). Available at SSRN: https://ssrn.com/abstract=1803461

Letenah Ejigu Wale (Contact Author)

Panjab University - University Business School ( email )

Chandigarh, 160014
India

Bahir Dar University - Department of Accounting

Bahir Dar, 79
Ethiopia

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