(Yi, Xi, X2i) satisfy the assumptions in Key Concept 6 4 You are interested in 1, the causal effect of X1 on Y Suppose that X1 and X2 are uncorrelated You estimate by 1 regressing Y onto X1 (so that X2 is not included in the regression) Does this estimator suffer from omitted variable bias Explain ...

For omitted variable bias to occur two conditions must be t ...

(Yi, Xi, X2i) satisfy the assumptions in Key Concept 6.4. You are interested in 1, the causal...

Question:

(Yi, Xi, X2i) satisfy the assumptions in Key Concept 6.4. You are interested in β1, the causal effect of X1 on Y. Suppose that X1 and X2 are uncorrelated. You estimate by β1 regressing Y onto X1 (so that X2 is not included in the regression). Does this estimator suffer from omitted variable bias? Explain.