Discussing what identification strategy would be suitable for solving the endogeneity problem: Kwadwo Koomson, Individual Assignment, Ireland

Individual assignment

The assignment focuses on:
1. Describing variables;
2. Visualising variables of interest;
3. Running a simple regression and interpret its results; and
4. Discussing what identification strategy would be suitable for solving the endogeneity problem.

Instructions: Please read carefully
• Please choose one dataset from the tile of Individual Assignment (not datasets for tutorials).
• Please feel free to add as many code blocks and text blocks as you need.
• Please clearly comment your code (what does each line of code produce).
• Please do NOT remove any text blocks provided. Otherwise, you may get a penalty of 10 points.

Part I

This section has a maximum of 10 points. To earn the maximum number of points, you should answer the following three questions.

• Name the dataset you choose.
•  Discuss the units of measurement of all the variables.
• List the type of variables of the variables of interest (at least one continuous variable and one categorical/ binary variable).

Part II

This section has a maximum of 25 points. To earn the maximum number of points, you need to create a graph of your variable of interest using matplotlib and/or seaborn. The graph should have title, legend, axis labels, and figure caption.

Part IV

This section has a maximum 30 points. To earn the maximum number of points, you need to answer the following questions:
Write the equation you estimate.

A convincing discussion of what variables to control for is essential. Are your results causal or not? Discuss potential concerns with omitted variables etc along with the consequences of those problems.

•  Present your results in a table that includes coefficients, standard error, R-squared and number of observations. The control variables should be added one by one, and the results should be reported in separate columns (number of observations should be constant)
• Write about the magnitude and interpretations of your coefficients. Are they statistically significant (includes significance levels in tables)? Do they have or not the expected sign (this may indicate a specification problem, for example, omitted variables)?

Part V

This section has a maximum of 10 points. To earn the maximum number of points, discuss what identification strategy would be suitable for solving the endogeneity problem. If this is not possible, discuss why it is impossible to find an identification strategy. You do not need to run the regression.