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- W2951431299 abstract "There is a widespread belief among economists that adding additional variables to a regression model causes higher standard errors. This note shows that, in general, this belief is unfounded and that the impact of adding variables on coefficients’ standard errors is unclear. The concept of standard-error-decreasing complementarity is introduced, which works against the collinearity-induced increase in standard errors. How standard-error-decreasing complementarity works is illustrated with the help of a nontechnical heuristic, and, using an example based on artificial data, it is shown that the outcome of popular econometric approaches can be potentially misleading." @default.
- W2951431299 created "2019-06-27" @default.
- W2951431299 creator A5063971454 @default.
- W2951431299 date "2017-01-01" @default.
- W2951431299 modified "2023-09-26" @default.
- W2951431299 title "On Standard-Error-Decreasing Complementarity: Why Collinearity is Not the Whole Story" @default.
- W2951431299 doi "https://doi.org/10.2139/ssrn.2922985" @default.
- W2951431299 hasPublicationYear "2017" @default.
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