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To Analyze the Situation of Simultaneous Causality Bias, Consider the Following

question 64

Essay

To analyze the situation of simultaneous causality bias, consider the following system of equations:
Yi = β0 + β1Xi + ui
Xi = γ0\gamma _ { 0 } + γ1\gamma _ { 1 } Yi + vi
Demonstrate the negative correlation between Xi and γ1\gamma _ { 1 } for γ1\gamma _ { 1 } < 0 , either through mathematics or by presenting an argument which starts as follows: "Imagine that ui is negative."

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