Questions tagged [omitted-variable-bias]

Question 1

Note that \begin{equation} \tag{Eq. 1} y=a\sum_{i}^{m}X_{q,k}^{2} + a\sum_{i}^{m}X_{q,k}^{2}\sum_{j= i + 1}^{m} \frac{X_{q,j}}{X_{q,i}} \end{equation} which could be re-arranged as: \begin{equation} \...

Question 2

Studying the relation between cocaine use and rent price I have a dataset where I can only observe two features at a time, in other words I am able to run a set of $k\times (k-1)$ distinct regressions ...

Question 3

I am considering two models. One is a Poisson model where the true relationship is: $$E( y \mid x,z)=exp(bx+cx \times z + dz+ f(x))$$ The other is a linear model: $$E( y \mid x,z)=bx+cx \times z + dz +...

Question 4

I have a Poisson model where the true relationship is: $$E(y\mid x,z)=\exp(b_1+b_2\times x+b_3\times z)$$ but z is not observable and so it is omitted from the estimated regression. I read here that ...

Question 5

I am running a LASSO regression on Bernoulli uncorrelated variables, i.e. each variable has probability $\frac{1}{2}$ of having value 0 or 1. My undertanding is that there should be no ommitted ...

Question 6

I was just reading the Wikipedia page on omitted variable bias: [wiki for OVB][1], and I was confused by one of the main claims of the page, which is that the expected omitted variable bias is 0 iff ...

Question 7

If my regression model $$ y_i = \alpha + \beta x_i + \epsilon_i $$ suffers from OVB the error contains one variable which we assume correlated with $$ \epsilon_i = \gamma w_i + u_i $$ my estimate of $\...

Question 8

I am building a descriptive model using OLS multivariate linear regression. I have a couple dozen candidate predictors, but only around 200 cases. Since I wanted at least 10 cases / variable for the ...

Question 9

I am estimating a regression of the form: My variable of interest is "X1", and based on the information here I can confidently say that the goal of my analysis is a causal inference. Now to ...

Question 10

Suppose an independent variable that is influential in the data generating process for some dependent variable is omitted. The omitted variable has the following characteristics: It is NOT correlated ...

Question 11

If I know about an omitted variable in the regression and the data for it is available. But I also know that this omitted variable is endogenous, because the dependent variable and the omitted ...

Question 12

I was learning the mechanics of omitted variable bias in the context of linear regression. I built the following simple model with R: ...

Question 13

Using the usual matrix notation for Ordinary Linear Regression, suppose for $X_{n\times p}, Y_{n\times1}, B_{p\times1}$ and $e\sim MVN(0,I_{n\times n})$, we know the 'true' relationship is: $$Y=XB+e$$ ...

Question 14

I have the following model: $ X = \alpha_1 + aZ + \epsilon_1 \\ Y = \alpha_2 + bZ + cX + \epsilon_2 $ Suppose that $Z$ is randomly assigned but $X$ is correlated with the error term $\epsilon_2$, in ...

Question 15

I get weird results when trying to analyze omitted variable bias in R. If I try to analyze the bias for coefficient $\beta_j$ of variable $x_j$ in case of one omitted variable from set of two ...

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Questions tagged [omitted-variable-bias]

Relating omitted-variable bias to the re-arrangement of a multilinear regression

A seemingly unrelated set of regressions?

Non-linear omitted term in Poisson vs OLS regression

Omitted variable bias in Poisson regression

Why is there omitted variable bias in my regression of uncorrelated regressors?

When is omitted variable bias non-zero?

A model suffering from omitted variable bias can be said to be unidentified?

How to deal with possibly important predictors omitted during the building of an OLS multivariate linear regression model?

Endogeneity or omitted variable bias in a causal model

Specific question about the effect of an omitted variable on a regression model

Endogenous omitted variable in the model

Why is there a negative bias in this example of omitted variable bias?

How to prove OLS estimator still unbiased if omitted variable(s) are independent of included variables

biased estimation of variable correlated with endogenous variable

Omitted variable bias: 3 correlated variables and 1 omitted (R simulation)

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