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Unit 8
Assessing Studies Based on
Multiple Regression
1
Unit Objectives
 After completing this week’s activities you will be able to:
 Identify a framework to assess internal and external
validity of empirical studies conducted using regression
analysis.
 Assess internal and external validity of published
articles.
2
3
8.1. A Framework for Assessing
Statistical Studies: Internal and External
Validity
Internal validity: the statistical inferences about causal effects
are valid for the population being studied.
External validity: the statistical inferences can be generalized
from the population and setting studied to other populations
and settings, where the “setting” refers to the legal, policy,
and physical environment and related salient features.
4
8.1.1. Threats to Internal Validity of
Multiple Regression Analysis
Major threats to the internal validity of regression studies:
1. Omitted variable bias
2. Wrong functional form
3. Simultaneous causality bias
4. Errors-in-variables bias
5. Sample selection bias
All of these imply that E(ui|X1i,…,Xki)  0 – in which case OLS is
biased and inconsistent.
5
8.1.2. External Validity of Multiple
Regression Studies
How far can we generalize results from one study in a given
population to other populations as populations are different in
their legal and institutional settings?
 Repeat the analysis to other samples/settings as a way of
external validity.
 Compare your findings to other similar studies in the
literature

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unit8_2011363451.pptx

  • 1. Unit 8 Assessing Studies Based on Multiple Regression 1
  • 2. Unit Objectives  After completing this week’s activities you will be able to:  Identify a framework to assess internal and external validity of empirical studies conducted using regression analysis.  Assess internal and external validity of published articles. 2
  • 3. 3 8.1. A Framework for Assessing Statistical Studies: Internal and External Validity Internal validity: the statistical inferences about causal effects are valid for the population being studied. External validity: the statistical inferences can be generalized from the population and setting studied to other populations and settings, where the “setting” refers to the legal, policy, and physical environment and related salient features.
  • 4. 4 8.1.1. Threats to Internal Validity of Multiple Regression Analysis Major threats to the internal validity of regression studies: 1. Omitted variable bias 2. Wrong functional form 3. Simultaneous causality bias 4. Errors-in-variables bias 5. Sample selection bias All of these imply that E(ui|X1i,…,Xki)  0 – in which case OLS is biased and inconsistent.
  • 5. 5 8.1.2. External Validity of Multiple Regression Studies How far can we generalize results from one study in a given population to other populations as populations are different in their legal and institutional settings?  Repeat the analysis to other samples/settings as a way of external validity.  Compare your findings to other similar studies in the literature