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(True or False) Endogeneity most of the times is caused when important (statistically significant) variables are...

(True or False) Endogeneity most of the times is caused when important (statistically significant) variables are omitted in the regression model.

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Answer #1

We know that,

Endogeneity in this broad sense can be caused by omitted variables, or unobserved heterogeneity.

Hence,

Given statement is True.

Thank you.

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