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Assessing Omitted Variable Bias when the Controls are Endogenous

Paul Diegert, Matthew A. Masten, Alexandre Poirier

arXiv 6 Jun 2022 · Econometrics · 41 citations (OpenAlex)

arXiv:2206.02303 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Omitted variables are one of the most important threats to the identification of causal effects. Several widely used methods assess the impact of omitted variables on empirical conclusions by comparing measures of selection on observables with measures of selection on unobservables. The recent literature has discussed various limitations of these existing methods, however. This includes a companion paper of ours which explains issues that arise when the omitted variables are endogenous, meaning that they are correlated with the included controls. In the present paper, we develop a new approach to sensitivity analysis that avoids those limitations, while still allowing researchers to calibrate sensitivity parameters by comparing the magnitude of selection on observables with the magnitude of selection on unobservables as in previous methods. We illustrate our results in an empirical study of the effect of historical American frontier life on modern cultural beliefs. Finally, we implement these methods in the companion Stata module regsensitivity for easy use in practice.

Citation extraction

33
references
90
in-text mentions
33
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5
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16,351
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Bazzi, S., M. Fiszbein, and M. Gebresilasse (2020) Frontier culture: The roots and persistence of “rugged individualism” in the United States1.000243100%
2Oster, E (2019) Unobservable selection and coefficient stability: Theory and evidence1.000113100%
3Diegert, P., M. A. Masten, and A. Poirier (2025) An axiomatic approach to comparing sensitivity parameters self1.00093100%
4Cinelli, C. and C. Hazlett (2020) Making sense of sensitivity: Extending omitted variable bias0.9285380%
5Altonji, J. G., T. E. Elder, and C. R. Taber (2005) Selection on observed and unobserved variables: Assessing the effectiveness of Catholic schools0.87462100%
6Hosman, C. A., B. B. Hansen, and P. W. Holland (2010) The sensitivity of linear regression coefficients' confidence limits to the omission of a confounder0.6443267%
7Masten, M. A. and A. Poirier (2018) Identification of treatment effects under conditional partial independence self0.64422100%
8Masten, M. A. and A. Poirier (2025) The effect of omitted variables on the sign of regression coefficients self0.58531100%
9Basu, D (2022) Bounds for bias-adjusted treatment effect in linear econometric models0.51121100%
10De Luca, G., J. R. Magnus, and F. Peracchi (2019) Unobservable selection and coefficient stability: Theory and evidence0.51121100%

Showing the top 10 of 33 scored citations.

Cited by, within the corpus

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1An Axiomatic Approach to Comparing Sensitivity Parameters1.00084
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6Negative Control Falsification Tests for Instrumental Variable Designs0.40511
715.819Identification of Average Responses with Endogenous Controls0.40511
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