Overview of endogeneity
As discussed in chapter 2, managers actively make production-investment, choices. These choices are intertwined and far from innocuous. Design of accounting (like other information systems) is highly dependent on the implications and responses to accounting information in combination with other information. As these decisions are interrelated, their analysis is inherently endogenous (Demski ). Endogeneity presents substantial challenges for econometric analysis. The behavior of unobservable (to the analyst) components and omitted, correlated variables are continuing themes.
KeywordsHazard Rate Instrumental Variable Causal Effect Baseline Hazard Average Treatment Effect
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