On Standard-Error-Decreasing Complementarity: Why Collinearity is Not the Whole Story

There is a widespread belief among economists that adding additional variables to a regression model causes higher standard errors. This note shows that, in general, this belief is unfounded and that the impact of adding variables on coefficients’ standard errors is unclear. The concept of standard-...

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Publicat a:MAGKS - Joint Discussion Paper Series in Economics (Band 03-2017)
Autor principal: Hayo, Bernd
Format: Article
Idioma:anglès
Publicat: Philipps-Universität Marburg 2017
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