{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/bounds-for-bias-adjusted-treatment-effect-in","title":"Bounds for Bias-Adjusted Treatment Effect in Linear Econometric Models","arxiv_id":"2203.12431","date":"2022-03-23","proceeding":null,"authors":["Deepankar Basu"],"abstract":"In linear econometric models with proportional selection on unobservables, omitted variable bias in estimated treatment effects are real roots of a cubic equation involving estimated parameters from a short and intermediate regression. The roots of the cubic are functions of $\\delta$, the degree of selection on unobservables, and $R_{max}$, the R-squared in a hypothetical long regression that includes the unobservable confounder and all observable controls. In this paper I propose and implement a novel algorithm to compute roots of the cubic equation over relevant regions of the $\\delta$-$R_{max}$ plane and use the roots to construct bounding sets for the true treatment effect. The algorithm is based on two well-known mathematical results: (a) the discriminant of the cubic equation can be used to demarcate regions of unique real roots from regions of three real roots, and (b) a small change in the coefficients of a polynomial equation will lead to small change in its roots because the latter are continuous functions of the former. I illustrate my method by applying it to the analysis of maternal behavior on child outcomes.","url_abs":"https://arxiv.org/abs/2203.12431v1","url_pdf":"https://arxiv.org/pdf/2203.12431v1.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"bounds-for-bias-adjusted-treatment-effect-in","repo_url":"https://github.com/dbasu-umass/bate","is_official":1,"mentioned_in_paper":1,"mentioned_in_github":0,"framework":"none","reach":null}],"tasks":[{"task_slug":"regression-1","task_name":"regression"}],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"syntology_url":null,"atlas_url":null,"mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}