Potential remedies for when your model suffers from the endogeneity problem include all of the following except what?
A) Gather (additional) data on a possible instrumental variable.
B) Gather (additional) longitudinal data to allow for a fixed effect approach.
C) Gather (additional) control variables that would limit the endogeneity concern.
D) Check if the residuals from your regression are uncorrelated with your treatment.

Question

Quizplus · Accepted Answer

Checking if the residuals from your regression are uncorrelated with your treatment is not a potential remedy for endogeneity. This is because endogeneity occurs when there is a correlation between the independent variable and the error term, which means the residuals from the regression will be correlated with the treatment. Therefore, options A, B, and C are potential remedies for endogeneity as they address the potential sources of correlation between the independent variable and the error term.

Potential Remedies for When Your Model Suffers from the Endogeneity