Omitted Variable Bias

Feature image showing omitted variable bias with an omitted variable Z that affects outcome Y and is correlated with included regressor X, causing the coefficient on X to absorb part of Z.

Econometrics

Omitted Variable Bias: Missing Variables Distort Estimates

Omitted variable bias explains how missing correlated variables distort regression estimates and weaken causal interpretation in econometric models.

June 6, 2026