In this context what is meant by the statement that x3 is


Consider the regression equation

y= β1 + β2x2i + β3x3i + ei

where x2i, is exogenous and zi, is endogenous. zi, is a valid instrument for x3.
In this context, what is meant by the statement that x3, is endogenous?

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56_Regression equation.png

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Econometrics: In this context what is meant by the statement that x3 is
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