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This assumption is necessary to avoid an endogeneity problem.
I exclude, unlike Maggiori, the lagged exchange rate change from my set of instruments Z t in order to avoid an endogeneity problem once I use the zero stage prediction of the augmented Fama model to construct the dependent variable of the model.
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We also estimate the effects of average forecasts on future exchange rate changes to avoid a potential endogeneity problem (i.e., when using ex-post values of the exchange rate as covariates).
To avoid the endogeneity problem, we use as a covariate the exposure to PM10 per state described in Sect.
Our empirical research will use the latter solution to avoid the endogeneity of marginal tax rates.
One approach is that researchers try to avoid the endogeneity problem by narrowing the age range.
To avoid the endogeneity of the location decision, we examine robustness by restricting the sample to those who have not moved recently.
Identity To avoid the endogeneity of identity (if respondents are unhappy in Germany, they may be less likely to feel German), we use lagged identity measures as a proxy.
The exogenous decline in the Taiwanese fertility rate and the use of detailed medical information and demographic attributes of pregnant women allowed us to avoid the endogeneity problem that threatened the validity of prior research.
Prospective (2002) drug expenditures were used instead of concurrent (2003) drug expenditures to avoid model endogeneity stemming from the possibility that registration for public drug benefits affected the level of drug spending households could afford in the concurrent period.
To avoid endogeneity issues with respect to supply restrictions, we employ a regression-discontinuity approach using a World War II bombing boundary within the city of Rotterdam.
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