Arbeitspapier
When can we determine the direction of omitted variable bias of OLS estimators?
Omitted variable bias (OVB) of OLS estimators is a serious and ubiquitous problem in social science research. Often researchers use the direction of the bias in substantive arguments or to motivate estimation methods to deal with the bias. This paper offers a geometric interpretation of OVB that highlights the difficulty in ascertaining its sign in any realistic setting and cautions against the use of direction-of-bias arguments. This analysis has implications for comparison of OLS and IV estimators too.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 2018-16
- Klassifikation
-
Wirtschaft
Single Equation Models; Single Variables: General
- Thema
-
omitted variable bias
ordinary least squares
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Basu, Deepankar
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Massachusetts, Department of Economics
- (wo)
-
Amherst, MA
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Basu, Deepankar
- University of Massachusetts, Department of Economics
Entstanden
- 2018
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