Chapter 2 Essay Questions

Chapter 2

  1. Identify your own examples of endogeneity problems in the real world. Describe your example in detail and explain how it exhibits endogeneity.
  2. What are some examples of measurement problems that you could foresee if you were to conduct a study of how a country’s political institutions impact its level of economic development?
  3. Pick a country that has some political institutions or practices that seem difficult to understand. Think of the emergence of these institutions or practices as a puzzle. Now try to develop a hypothesis for a possible answer that would explain the puzzle. How could you develop a research plan that would allow you to gather evidence and test your hypothesis?
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