Unobservable Selection and Coefficient Stability: Theory and Validation
AbstractA common heuristic for evaluating robustness of results to omitted variable bias is to look at coefficient movements after inclusion of controls. This heuristic is informative only if selection on observables is proportional to selection on unobservables. I formalize this link, drawing on theory in Altonji, Elder and Taber (2005) and show how, with this assumption, coefficient movements, along with movements in R-squared values, can be used to calculate omitted variable bias. I discuss empirical implementation and describe a formal bounding argument to replace the coefficient movement heuristic. I show two validation exercises suggesting that this bounding argument would perform well empirically. I discuss application of this procedure to a large set of publications in economics, and use evidence from randomized studies to draw guidelines as to appropriate bounding values.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19054.
Date of creation: May 2013
Date of revision:
Note: HC LS
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
- I1 - Health, Education, and Welfare - - Health
- I12 - Health, Education, and Welfare - - Health - - - Health Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-24 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
- Pierre Chiapore & Climent Quintana Domeque & Sonia Oreffice, 2010.
"Fatter attraction: anthropometric and socieconomic matching on the marriage market,"
Working Papers. Serie AD, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie)
2010-23, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie).
- Pierre-Andrï¿½ Chiappori & Sonia Oreffice & Climent Quintana-Domeque, 2012. "Fatter Attraction: Anthropometric and Socioeconomic Matching on the Marriage Market," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 120(4), pages 659 - 695.
- Pierre-Andre Chiappori & Sonia Oreffice & Climent Quintana-Domeque, 2011. "Fatter Attraction: Anthropometric and Socioeconomic Matching on the Marriage Market," Discussion Papers, Columbia University, Department of Economics 1011-06, Columbia University, Department of Economics.
- Pierre-André Chiappori & Sonia Oreffice & Climent Quintana-Domeque, 2010. "Fatter Attraction: Anthropometric and Socioeconomic Matching on the Marriage Market," Working Papers 2011-012, Human Capital and Economic Opportunity Working Group.
- Douglas Almond & Bhashkar Mazumder, 2011. "Health Capital and the Prenatal Environment: The Effect of Ramadan Observance during Pregnancy," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 56-85, October.
- Diaz-Serrano, Luis & Raya, Josep M., 2014. "Mortgages, immigrants and discrimination: An analysis of the interest rates in Spain," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 22-32.
- Julia Cagé & Valeria Rueda, 2013. "The long Term Effects of the Printing Press in Sub Saharan Africa," PSE Working Papers halshs-00844446, HAL.
- Rachel Sabates-Wheeler & Philip Verwimp, 2014.
"Extortion with Protection: Understanding the Effect of Rebel Taxation on Civilian Welfare in Burundi,"
Working Papers ECARES
ECARES 2014-06, ULB -- Universite Libre de Bruxelles.
- Rachel Sabates-Wheeler & Philip Verwimp, 2014. "Extortion with Protection: Understanding the effect of rebel taxation on civilian welfare in Burundi," HiCN Working Papers 167, Households in Conflict Network.
- Rachel Sabates-Wheeler & Philip Verwimp, 2014. "Extortion with Protection: Understanding the effect of rebel taxation on civilian welfare in Burundi," Working Papers CEB, ULB -- Universite Libre de Bruxelles 14-004, ULB -- Universite Libre de Bruxelles.
- Spenkuch, Jörg & Tillmann, Philipp, 2014. "Elite Influence? Religion, Economics, and the Rise of the Nazis," MPRA Paper 54909, University Library of Munich, Germany.
- Hagen, Tobias & Waldeck, Stefanie, 2014. "Using panel econometric methods to estimate the effect of milk consumption on the mortality rate of prostate and ovarian cancer," Working Paper Series: Business and Law 03, Frankfurt University of Applied Sciences, Faculty of Business and Law.
- repec:hal:wpaper:halshs-00844446 is not listed on IDEAS
- Caliendo, Marco & Mahlstedt, Robert & Mitnik, Oscar A., 2014. "Unobservable, but Unimportant? The Influence of Personality Traits (and Other Usually Unobserved Variables) for the Evaluation of Labor Market Policies," IZA Discussion Papers 8337, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.