Example
Example
• Estimating the impact of education on the number of children for a sample of women in Botswana
OLS • Education may be endogenous - both education and number of children may be influenced by some unobserved socioeconomic factors
• Finding possible instrument: a dummy variable
• Intuition behind the instrument:
• in systems when schooling is mandatory up to a certain age, the month in which a person was born can be a predictor for number of years of education
this variable should not be related to the number of children a person has and thus to the error term
Example
Example
Читайте також: - Edit] Example 2: Fourier's motivation
- In both examples the sounds differ in articulations, but in the second case the sounds have functionally no significance.
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