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For a fuller discussion of how an omitted factor related to receipt of intervention and outcome can bias results in a cohort study but not a randomized trial see Baker and Kramer [ 12].
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And dropping the Reagan tax cut (where, as described above, an important omitted factor seems to have acted directly to reduce nondefense spending) yields estimates that fluctuate irregularly around zero; similarly, either excluding the Korean War period or including the contemporaneous value and 20 lags of the dummy variable for military actions weakens the estimated effect considerably.
Selection on unobservables and reverse causality would imply, among other things, the presence of a third omitted factor simultaneously causing subsequent increases in size and TFP.
Mediation assumes no unmeasured variables; this is of course not true as we can never account for all omitted factors.
The confounding omitted factor must therefore meet a series of requirements in order to bias my estimates away from zero.
This would mean that the significance attributed to the age of the mother as a significant correlate of child health outcomes, may in fact be a proxy for other omitted factors.
But if some of the omitted factors are correlated with membership of a monetary union, the estimate of its impact on trade is exaggerated.
State fixed effects will capture time invariant omitted factors which increase migration, and these include a state's historical role as a migration hub where networks are stronger.
One concern in our results is that they may be caused by some omitted factors.
The association of omitted factors with vaccination and their correlation with birth registration is unknown.
However, one limitation is that age could capture the effect of omitted factors such as income.
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CEO of Professional Science Editing for Scientists @ prosciediting.com