Working Paper Number
In this paper, I derive an expression for the asymptotic bias in the OLS estimator of the partial effect of a regressor on the dependent variable when there is reverse causality and all variables in the model are covariance stationary. I show that the sign of the asymptotic bias depends only on the signs of the bi-directional causal effects.
Basu, Deepankar, "Asymptotic Bias of OLS in the Presence of Reverse Causality" (2015). Economics Department Working Paper Series. 179.