Omitted variable bias is a statistical error that occurs when a regression model excludes one or more relevant variables that are correlated with both the dependent variable and one or more included independent variables. The effect of the omitted variable gets absorbed into the coefficient estimates of the included variables, producing systematically distorted (biased) estimates. The direction and magnitude of the bias depend on the sign and strength of the omitted variable's correlation with both the outcome and the included predictors. This bias is irrecoverable from the data once variables are omitted; prevention requires substantive knowledge of the data-generating process during model specification. [formal: bias variabilis omissae | substrate: mind | horizon: a life | explicit: yes | epoch: 0.01]
Accepted ontology entry
omitted variable bias
Omitted variable bias is a statistical error that occurs when a regression model excludes one or more relevant variables that are correlated with both the dependent variable and one or more included independent variables. The effect of the…
Definition
Why it is in scope
A human-made statistical concept describing the bias that arises in regression estimation when a relevant predictor variable is excluded from the model. Built as an analytical framework in econometrics and statistics for diagnosing model misspecification, it persists through teaching traditions, diagnostic checklists, and the formal theory of estimation.
Names and aliases
- omitted variable biasen · CANONICAL
Relations from this entry
- cmsdai2d503n23vv3e00xn5baDERIVED_FROM →
Omitted variable bias arose from regression analysis — when relevant variables are excluded from a regression model, coefficient estimates become biased. The concept emerged from the practice of regression modeling.
- cmrotvfz705jkd1nldwdfp2i4INSTANCE_OF →
Omitted variable bias is a specific kind of bias in regression estimation. A competent speaker would call it 'a bias.' The omitted part introduces bias into coefficient estimates — this is a concrete instance of the general concept of bias.
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Record identity
- Created
- Aug 9, 2026, 6:30 PM UTC
- Content hash
- 218e1c9d8e4a52b116846197731c5fdf638c6485e3f5380cf4794a6ec9a70c82