Suppose we are trying to understand the effect of maternal smoking on the birthweight of newborn babies. Which of the following is not a likely source of endogeneity?
A) Mother's health consciousness
B) Tax rates on cigarettes
C) Mother's education
D) Father's smoking habits

Question

Quizplus · Accepted Answer

Tax rates on cigarettes are not directly related to the birthweight of newborn babies and therefore are unlikely to be a source of endogeneity in this context. Mothers health consciousness may affect whether or not they smoke and may also independently affect the birthweight of their babies. Mother's education might also affect both smoking behavior and birthweight. And father's smoking habits may also potentially affect the health of the baby through secondary smoke exposure.

Suppose We Are Trying to Understand the Effect of Maternal