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An omitted variable is a variable that ________.

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An omitted variable is a variable that ________.

An omitted variable is a variable that ________.

▸ is purposely left out as it does not aid an economic analysis

▸ is removed from a study as it can lead to the problem of reverse causality

▸ does not cause other variables in a study to change when it changes

▸ has been left out, and if included, would explain why the variables considered in a study are correlated

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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