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agasfer [191]
3 years ago
11

A researcher plans to study the causal effect of a strong legal system on economy, using data from a random sample of U.S. count

ies. The researcher plans to regress national income per capita on whether the country has a strong legal system or not (an indicator variable taking the value 1 or 0, based on expert opinion). Do you think this regression suffers from omitted variable bias
Mathematics
1 answer:
kogti [31]3 years ago
7 0

Answer:

Based on expert opinion the regression does not suffer from omitted variable bias

Step-by-step explanation:

<em>Based on expert opinion the regression does not suffer from omitted variable bias </em>because its indicators taking values of 1 and 0 where 1 would represent taking action by the legal system  and 0 would represent not taking action by the legal system. as

The researcher plans to regress national income per capita based on the effect of the legal system

applying the formula for addressing omitted variable bias ( attached below )

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