Refer to the regression Eqs. (13.3.1) and (13.3.2). In a manner similar to Eq. (13.3.3) show that

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Refer to the regression Eqs. (13.3.1) and (13.3.2). In a manner similar to Eq. (13.3.3) show that

E(α̂1) = β1 + β3(X̅3 − b322)

where b32 is the slope coefficient in the regression of the omitted variable X3 on the included variable X2.

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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