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The Phantom Menace of Omitted Variables

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  • Colin Vance
  • Nolan Ritter
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    Abstract

    This note demonstrates that in applied regression analysis, the variance of a coefficient of interest may decrease from the inclusion of a control variable, contrasting with Clarke’s assertion (2005, 2009) that the variance can only increase or stay the same. Practitioners may thus be well advised to include a relevant control variable on this basis alone, particularly when it is weakly correlated with the variable of interest.

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    File URL: http://cmp.sagepub.com/content/29/2/233.abstract
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    Bibliographic Info

    Article provided by Peace Science Society (International) in its journal Conflict Management and Peace Science.

    Volume (Year): 29 (2012)
    Issue (Month): 2 (April)
    Pages: 233-238

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    Handle: RePEc:sae:compsc:v:29:y:2012:i:2:p:233-238

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    Web page: http://pss.la.psu.edu/

    Related research

    Keywords: control variables; model specification; variance;

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