OLS limitations: Why should OLS not be used in an evaluation study?

12 December 2016 0 4K Report

Good evening.

I am developing a thesis on the "The effect of R&D direct subsidies on innovation performance: an analysis of the Spanish construction industry."

My dependent variable is R&D intensity.

My independent variable is R&D subsidies.

I used OLS as a statistical model and now I am looking for limitations of the model in this case.

Can anyone help me please?

Thanks a lot

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