Omitted variable bias If we miss out an important variable it not only means our model is poorly specified it also means that any estimated parameters are likely to be biased. If the true model were Yt = α0 α1Xt α - Oster - Document - PDFSEARCH.IO

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	Omitted variable bias If we miss out an important variable it not only means our model is poorly specified it also means that any estimated parameters are likely to be biased. If the true model were Yt = α0 + α1Xt + α Add to Reading List Document Date: 2010-12-21 10:47:19 Open Document File Size: 13,30 KB Share Result on Facebook

Omitted variable bias If we miss out an important variable it not only means our model is poorly specified it also means that any estimated parameters are likely to be biased. If the true model were Yt = α0 + α1Xt + αAdd to Reading List