ppt课件-linear regression1- n c h u（线性regression1 - n c h u）.pptVIP

* * Illustrating Omitted Variable Bias But when we run simple model excluding X2, we attribute all causal influence to X1 Coefficient is too big and variance of coefficient is too small Y X1 Omitted Variable Bias: Causes This problem is explicitly theoretical rather than “statistical.” No statistical test can reveal a specification error or omitted variable bias Scholars can form hypotheses about other X’s that may be a source of omitted variable bias Including Irrelevant Variables In this case: If b2=0, our estimate of b1 is not affected If X1’X2=0, our estimate of b1 is not affected But i