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Bias of OLS Estimators due to Exclusion of Relevant Variables and Inclusion of Irrelevant Variables

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  • Deepankar Basu

    (Department of Economics, University of Massachusetts - Amherst)

Abstract

In this paper I discuss three issues related to bias of OLS estimators in a general multivariate setting. First, I discuss the bias that arises from omitting relevant variables. I offer a geometric interpretation of such bias and derive su

Suggested Citation

  • Deepankar Basu, 2018. "Bias of OLS Estimators due to Exclusion of Relevant Variables and Inclusion of Irrelevant Variables," UMASS Amherst Economics Working Papers 2018-19, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2018-19
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    References listed on IDEAS

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    More about this item

    Keywords

    omitted variable; irrelevant variables; ordinary least squares; bias;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

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