Unrestricted Test Equation in omitted variables test question
Posted: Mon Jun 17, 2019 12:02 pm
What is the purpose of this output? Is it for comparison with the initial estimate?
I'm estimating a model without a probable "necessary" regressor because of endogeneity concerns--I have no good instrumental variable to use for simultaneous estimation. My way forward seems to be to acknowledge the omitted variable and assess its impact.
The F test rejects the null that the omitted variable is not significant.
The Unrestricted Test Equation estimate resembles the output from my original estimate (without the endogenous variable) in terms of p-values and coefficient signs. This strikes me as a good thing but I need to know what I'm talking about for a journal submission.
Thank you for help! eljayski
I'm estimating a model without a probable "necessary" regressor because of endogeneity concerns--I have no good instrumental variable to use for simultaneous estimation. My way forward seems to be to acknowledge the omitted variable and assess its impact.
The F test rejects the null that the omitted variable is not significant.
The Unrestricted Test Equation estimate resembles the output from my original estimate (without the endogenous variable) in terms of p-values and coefficient signs. This strikes me as a good thing but I need to know what I'm talking about for a journal submission.
Thank you for help! eljayski