Evaluating the Causal Effect and Omitted-variable bias

Evaluating the Causal Effect and Omitted-variable bias

Evaluating the Causal Effect and Omitted-variable bias. Econometrics is the study of statistical techniques for analyzing economic data. Students are expected to learn from this course features of multiple regressions and the fundamental assumptions. The research project should master how to employ appropriate techniques to deal with violations of these assumptions and how to analyze regression results, using econometrics knowledge and software (R or STATA).

The project expects to see your ability to construct ECONOMETRICAL RESEARCH RATHER THAN STATISTICAL RESEARCH. Please talk about the (causal) effect of the variable of interest on the dependent variable. Other controls are introduced as auxiliaries for the sole purpose of diminishing or eliminating the omitted variable bias in the estimated effect (coefficient) of the variable of interest. I have attached a detailed instruction and the project proposal (labor productivity and obesity level) for your reference. However, please note this proposal is more of a statistical approach. If you can write an econometric paper based on this (labor productivity and obesity level) proposal, please talk about why do you want to include Southern States and GDP Per Capita?

Evaluating the Causal Effect and Omitted-variable bias


Please talk about how would you eliminate omitted variable bias (and how this is important to econometric)? How would your omitted variable (such as Southern States in the US) bias is relatable to your variable of interest (Obesity)? — Please explain the relationship between your Omitted Variable and Variable of Interest in the econometrical framework (for example, different states/regions have different levels of education in the US, so you can use different regions as a proxy somehow reflecting the level of education level/eating culture, and how this eating culture is relatable to the diet of a certain group of people (for example, Southerners Eat Fast Food More Than Westerners and Northerners). Please justify your controls and logic in your own words and highlight the econometrical aspect of this research. Use/cite course materials and the textbook (available in Google Drive as 5_Introductory Econometrics_ A Modern Approach (Textbook).pdf) as your key concepts for this project.

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Approximately 250 words

Total price (USD) $: 10.99