Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/174391 
Authors: 
Year of Publication: 
2015
Series/Report no.: 
Working Paper No. 2015-18
Publisher: 
University of Massachusetts, Department of Economics, Amherst, MA
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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