Simultaneous causality bias
A)is also called sample selection bias.
B)happens in complicated systems of equations called block recursive systems.
C)results in biased estimators if there is heteroskedasticity in the error term.
D)arises in a regression of Y on X when, in addition to the causal link of interest from X to Y, there is a causal link from Y to X.

Question

Quizplus · Accepted Answer

Simultaneous causality bias occurs when there is a causal relationship not only from X to Y (the relationship of interest), but also from Y to X. This makes it difficult to determine the true direction of causality and can result in biased estimators.

Simultaneous Causality Bias