Suppose, in a regression, you know you have an omitted variable, W i . In your model,
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose, in a regression, you know you have an omitted variable, Wi. In your model, you estimate the coefficient on Di (i.e. the effect of interest) the to be positive. Under what conditions on and Cov(Wi, Di|Xi) is this information still useful? Be specific.
Posted Date: