Question

(6)Suppose that we estimate the model: y = ap + a2 +e, when the true model was y = Bo + B12+ B2x+u. Under what conditions and in what direction will ái be biased.

Answer 1

Here Y=a0+a1x+e and y=b0+b1x+b2x+u

si a1 be biased so y(a1x+e) =y(b1+b2+u)

Here there is  unbiased but few actually are, suggests a new study. In the study, Mohsen Javdani and Ha-Joon Chang examine how ideology influences views held by 2,425 economists from 19 countries. They conduct an online experiment where participants were asked to evaluate statements on a range of topics including inequality, the role of government and the free market. Each statement was attributed randomly to a mainstream economist or a less-mainstream economist with a different ideology. In addition, a few statements did not have an attributed source.

While over 80% of the participants said that a statement should be evaluated for its content and not for its source, this did not translate into their evaluations. The authors find that participants were more likely to agree with a statement if it came from a mainstream source than from a non-mainstream or unattributed source.