Suggestions(5)
Exact(3)
That unobservable factor is consistent with an unobserved entrepreneurial skill.
Error terms in the three equations are positively correlated, consistent with the existence of a common unobservable factor that increases the likelihood of all three decisions.
Moreover, if there had been an unobservable factor that affected both the establishment of a revolutionary base area and economic growth after the 1950s (but had no effect on economic growth in traditional agricultural society), we would be unable to explain the substantial variation of economic performance across revolutionary bases in China.
Similar(57)
In our case, unobserved heterogeneity will exist if there are some unobservable factors that interact non linearly with the adequacy of prenatal care use causing the effect of prenatal care use on birth weight to differ amongst children in the population [27].
Meanwhile, time-varying unobservable factors are addressed by the addition of year fixed effects, ω t.
To capture unobservable factors in the world economy, we introduce time dummies in the regression.
We now explore the possibility that potential unobservable factors are biasing our previous estimates.
However, there are other unobservable factors that affect both education and fertility and vary over time.
Obviously, institution quality might be explained by a large set of observable but also unobservable factors.
Hence, modelling farm household income variation in response to different observable and unobservable factors needs to take this into account.
It is likely to arise when we examine a subsample in circumstances where the unobservable factors that influence inclusion of individuals in the subsample are correlated with the unobservable factors that influence the variable of primary interest [28].
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