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Causal inference using regression on the treatment variable

Causal inference using regression on the treatment variable

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Formula for omitted variable bias We can quantify the bias incurred by excluding a confounding covariate in the context where a simple linear regression model is appropriate and there is only one confounding covariate. First define the “correct” specification as yi = β0 +β1Ti +β2xi + i (9.1)

  Variable, Bias, Omitted, Omitted variable bias

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