Omitted variable bias: A threat to estimating causal relationships

Methods in Psychology

E. Mäthner¹  L. Winnen²  R. Lanwehr³  R. Wilms⁴ 

[1] Corresponding author.;South Westphalia University of Applied Sciences, Germany;Technische Hochschule Mittelhessen—University of Applied Sciences, Germany;Vrije Universiteit Amsterdam, Netherlands;

关键词: Omitted variable bias;    Endogeneity;    Causal claims;   

DOI  :  

来源: DOAJ

【 摘 要 】

We aim to raise awareness of the omitted variable bias (i.e., one special form of endogeneity) and highlight its severity for causal claims. Firstly, we demonstrate via analytic proof that omitting a relevant variable from a model which explains the independent and dependent variable leads to biased estimates. Secondly, we offer an easy-to-understand visualization for the problem. Finally, we discuss two remedies, diminishing the risk of the omitted variable bias, namely the instrument variable or two-stage least squares estimator and the regression discontinuity design. We hope that our review will motivate researchers to use them more often in future research.

【 授权许可】

Unknown