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Keefer, Quinn A. W. – Journal of Economic Education, 2023
An alternative approach for introducing instrumental variables in econometrics courses is presented in this article. The method is based on the ordinary least squares omitted variable bias formula. The intuition for the approach capitalizes on students' understanding and intuition of omitted variables. Thus, if students understand omitted variable…
Descriptors: Least Squares Statistics, Economics, Economics Education, Computation