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Omitted Variables, Countervailing Effects, and the Possibility of Overadjustment

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  • Clarke, Kevin A.
  • Kenkel, Brenton
  • Rueda, Miguel R.

Abstract

The effect of conditioning on an additional covariate on confounding bias depends, in part, on covariates that are unobserved. We characterize the conditions under which the interaction between a covariate that is available for conditioning and one that is not can affect bias. When the confounding effects of two covariates, one of which is observed, are countervailing (in opposite directions), conditioning on the observed covariate can increase bias. We demonstrate this possibility analytically, and then show that these conditions are not rare in actual data. We also consider whether balance tests or sensitivity analysis can be used to justify the inclusion of an additional covariate. Our results indicate that neither provide protection against overadjustment.

Suggested Citation

  • Clarke, Kevin A. & Kenkel, Brenton & Rueda, Miguel R., 2018. "Omitted Variables, Countervailing Effects, and the Possibility of Overadjustment," Political Science Research and Methods, Cambridge University Press, vol. 6(2), pages 343-354, April.
    • Handle: RePEc:cup:pscirm:v:6:y:2018:i:02:p:343-354_00
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    Cited by:

    1. Boris Sokolov & Eduard Ponarin, 2019. "Disillusionment And The Growth Of Mass-Level Euroscepticism In Post-Communist East-Central Europe," HSE Working papers WP BRP 89/SOC/2019, National Research University Higher School of Economics.

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