Reduced Form Regression - Web the reduced form of a model is the one in which the endogenous variables are expressed as functions of the exogenous. The regression of earnings on the instrument is called the reduced form (causal e¤ect number 2) yi = p20 + p21zi +.
Web the reduced form of a model is the one in which the endogenous variables are expressed as functions of the exogenous. The regression of earnings on the instrument is called the reduced form (causal e¤ect number 2) yi = p20 + p21zi +.