ScPoEcon / ScPoEconometrics

Undergraduate textbook for Econometrics with R
https://ScPoEcon.github.io/ScPoEconometrics/
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direction of OVB is implicit #114

Closed floswald closed 4 years ago

floswald commented 5 years ago

In the last box of section 6.5, ”Direction of omitted variable bias”, the implicit assumption is that b_2 the coefficient on the omitted variable, z, is positive. The fact that this assumption is implicit could be confusing for the students.