Provide an example of a regression that arguably would have a high value of (R^{2}) but would

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Provide an example of a regression that arguably would have a high value of \(R^{2}\) but would produce biased and inconsistent estimators of a causal effect. Explain why the \(R^{2}\) is likely to be high. Explain why the OLS estimators would be biased and inconsistent.

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Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

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