Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Social and Behavioral Sciences
Investigating Omitted Variable Bias In Regression Parameter Estimation: A Genetic Algorithm Approach, Lonnie K. Stevans, David N. Sessions
Investigating Omitted Variable Bias In Regression Parameter Estimation: A Genetic Algorithm Approach, Lonnie K. Stevans, David N. Sessions
Lonnie K. Stevans
Bias in regression estimates resulting from the omission of a correlated relevant variable is a well known phenomenon. In this study, we apply a genetic algorithm to estimate the missing variable and, using that estimated variable, demonstrate that significant bias in regression estimates can be substantially corrected with relatively high confidence in effective models. Our interest is restricted to the case of a missing binary indicator variable and the analytical properties of bias and MSE dominance of the resulting dependent error generated vector process. These findings are compared to prior results for the independent error proxy process. Simulations are run …