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We provide a justification for why, and when, endogeneity will not cause biasin the interpretation of the coefficients in a regression model. This techniquecan be a viable alternative to, or even used alongside, the instrumentalvariable method. We show that when performing any comparative study, it ispossible to measure the true change in the coefficients under a broad set ofconditions. Our results hold, as long as the product of the covariancestructure between the explanatory variables and the covariance between theerror term and the explanatory variables are equal, within the same system atdifferent time periods or across multiple systems at the same point in time.

Are Instrumental Variables Really That Instrumental? Endogeneity Resolution in Regression Models for Comparative Studies