The endogeneity problem that results from when a variable correlated with the treatment is not included as a control variable is known as the:
A) instrumental variable.
B) omitted variable bias.
C) weak instruments problem.
D) least efficient estimator.

Question

Quizplus · Accepted Answer

The endogeneity problem caused by an omitted variable is known as omitted variable bias. An instrumental variable is a variable used to address endogeneity, the weak instruments problem refers to poorly correlated instruments, and the least efficient estimator is not applicable to this question.

The Endogeneity Problem That Results from When a Variable Correlated