Specification Error in Multinomial Logit Models: Analysis of the Omitted Variable Bias
1980-05
Title
Specification Error in Multinomial Logit Models: Analysis of the Omitted Variable Bias
Alternative title
Authors
Published Date
1980-05
Publisher
Center for Economic Research, Department of Economics, University of Minnesota
Type
Working Paper
Abstract
In this article, we analyze the omitted variable bias problem
in the multinomial logistic probability model. Sufficient, as well
as necessary, conditions under which the omitted variable will not
create biased coefficient estimates for the included variables are
derived. Conditional on the response variable, if the omitted
explanatory and the included explanatory variable are independent,
the bias will not occur. Bias will occur if the omitted relevant
variable is independent with the included explanatory variable.
The coefficient of the included variable plays an important role
in the direction of the bias.
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Description
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Series/Report Number
Discussion Paper
131
131
Funding information
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Doi identifier
Previously Published Citation
Lee, L., (1980), "Specification Error in Multinomial Logit Models: Analysis of the Omitted Variable Bias", Discussion Paper No. 131, Center for Economic Research, Department of Economics, University of Minnesota.
Other identifiers
Suggested citation
Lee, Lung-Fei. (1980). Specification Error in Multinomial Logit Models: Analysis of the Omitted Variable Bias. Retrieved from the University Digital Conservancy, https://hdl.handle.net/11299/55036.
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