Multicollinearity and Endogeneity

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Apoorva Jain

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Jun 25, 2020, 12:02:00 PM6/25/20
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Dear All

Can multicollinearity lead to the problem of endogeneity?

Thanks & Regards
Apoorva Jain

Neeraj Kaushik

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Jun 25, 2020, 12:04:57 PM6/25/20
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Dear Apoorva

Multi-Collinearity is the correlation among IDVs while in Endogeneity either there is a reciprocal relation between DV & IDV or both DV & IDV are affected by any omitted var.

Plz watch Endogeneity: An inconvenient truth (full version), by John Antonakis: 

In my opinion,  Multi-Collinearity shd not lead to Endogeneity.

Best wishes

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Apoorva Jain

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Jun 25, 2020, 12:17:37 PM6/25/20
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