Endogeneity problem 

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Microsoft Word - doc136.doc
... relationship between competition, entry and exit. this relationship is not straightforward because of the endogeneity problem. 35 formal model and used estimation technique the model exists of simultaneous equations ... this procedure is known as the 2-stage least squares-technique to correct for endogeneity problems (see for example verbeek, 2004). a a positive and significant correlation between ...
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disc160.pdf
... able to finance early retirement. this leads to an endogeneity problem when studying the causal effect of private wealth on retirement. the endogeneity should actually lead to an upward bias in the impact ... completely exogenous. we assume the wage to be constant over time to facilitate the optimization problem. a time varying wage would induce precautionary savings as an additional motive but would ...
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