Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287391 
Year of Publication: 
2021
Citation: 
[Journal:] Journal of the Academy of Marketing Science [ISSN:] 1552-7824 [Volume:] 50 [Issue:] 1 [Publisher:] Springer US [Place:] New York, NY [Year:] 2021 [Pages:] 46-66
Publisher: 
Springer US, New York, NY
Abstract: 
Marketing researchers are increasingly taking advantage of the instrumental variable (IV)-free Gaussian copula approach. They use this method to identify and correct endogeneity when estimating regression models with non-experimental data. The Gaussian copula approach's original presentation and performance demonstration via a series of simulation studies focused primarily on regression models without intercept. However, marketing and other disciplines' researchers mainly use regression models with intercept. This research expands our knowledge of the Gaussian copula approach to regression models with intercept and to multilevel models. The results of our simulation studies reveal a fundamental bias and concerns about statistical power at smaller sample sizes and when the approach's primary assumptions are not fully met. This key finding opposes the method's potential advantages and raises concerns about its appropriate use in prior studies. As a remedy, we derive boundary conditions and guidelines that contribute to the Gaussian copula approach's proper use. Thereby, this research contributes to ensuring the validity of results and conclusions of empirical research applying the Gaussian copula approach.
Subjects: 
Endogeneity
Gaussian copula
Intercept
Linear regression
Multilevel models
Sample size
Simulation
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article
Document Version: 
Published Version

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