Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174391
Authors: 
Basu, Deepankar
Year of Publication: 
2015
Series/Report no.: 
Working Paper 2015-18
Abstract: 
In this paper, I derive an expression for the asymptotic bias in the OLS estimator of the partial effect of a regressor on the dependent variable when there is reverse causality and all variables in the model are covariance stationary. I show that the sign of the asymptotic bias depends only on the signs of the bi-directional causal effects.
Subjects: 
reverse causality
simultaneity bias
JEL: 
C10
C30
Document Type: 
Working Paper
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