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Suppose, in a regression, you know you have an omitted variable, W i . In your model, you estimate the coefficient on D i (i.e.
Suppose, in a regression, you know you have an omitted variable, Wi. In your model, you estimate the coefficient on Di (i.e. the effect of interest) the to be positive. Under what conditions on and Cov(Wi, Di|Xi) is this information still useful? Be specific.
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