Essay
Your econometrics textbook stated that there will be omitted variable bias in the OLS estimator unless the included regressor, X, is uncorrelated with the omitted variable or the omitted variable is not a determinant of the dependent variable, Y. Give an intuitive explanation for these two conditions.
Correct Answer:
Verified
The regression coefficient is the partia...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q24: You have collected data for 104
Q25: Consider the following earnings function:<br>ahe<sub>i</sub>= β<sub>0</sub> +
Q26: In the multiple regression model with
Q27: In the multiple regression model with
Q28: You try to establish that there is
Q30: Imagine you regressed earnings of individuals on
Q31: Imperfect multicollinearity<br>A)implies that it will be difficult
Q32: Under the least squares assumptions for the
Q33: In the multiple regression model, the
Q34: The probability limit of the OLS