Causal statements in the context of regression analysis

Causal statements in the context of regression analysis

discuss what is required to make causal statements in the context of regression analysis… In other words, what is required to be able to say that a particular independent variable, or treatment, causes the dependent variable? In your answer, discuss the role played by obtaining a random sample and random assignment of the “treatment” (in many cases, the treatment is the main independent variable). Once we obtain a satisfactory regression model, discuss potential sources of bias – e.g., not using the correct functional form, measurement error, omitted variable bias, the simultaneity problem, etc. Finally, what are some key considerations in selecting “control” variables in a multiple regression analysis.

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