List out endogeneity concerns for below regression settings. Be specific. For example, consider the following regression: ln(wage) = β0 + β1Education + ε 1. We may have omitted variable ability in the regression, ability correlated with education (strong ability makes easy to obtain more education) and a determinant of wage and thus the model will have OVB. 2. We may have reverse causality. Higher wage means more money in the pocket and thus also a determinant of education (education costs money…!). Therefore, we will not have a consistent estimate of β1 , i.e. a causal effect estimation. Please work on below regression settings. 1. Q = β0 + β1R&D expenses + ε where Q is tobin’s Q, a measure of firm performance. 2. Financial Analyst Forecast Accuracy = β0 + β1Analyst′s Social Network Size + ε 3. Board of Directors’ Monitoring Effectiveness = β0 + β1 Institutional Ownership Concentration + ε where institutional ownership concentration measured using the number of block holders.
Welcome to Legit Writing
