426
Views
5
CrossRef citations to date
0
Altmetric
Original Articles

Addressing endogeneity in estimating the effect of social capital on psychological health

 

Abstract

This study examines the relationship between social capital and psychological health. Endogeneity concerns are addressed through the development of a two-stage residual inclusion (2SRI) model. I provide robust evidence that levels of social trust and support from friends significantly affect self-reported psychological health. Estimates obtained relating to the effect of these variables using the 2SRI method as well as two-stage least squares greatly exceed those obtained through standard ordered logit and OLS models. This illustrates the importance of controlling for endogeneity bias in any future studies of the relationship between social capital and psychological health.

JEL Classification:

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.