Lecture 5

Topic: Exogeneity

The test aspect of exogenity overaps with IV estimation which is our next topic, so I have included references to Ch 8 in the book. But for tomorrow, just read that (e.g., Ch 8.3) cursory. Review however, sources of OLS bias (simultaneity, expectations variables and measurement error) which are consequens of "failed exogeneity", from Introductory Econometrics.

R