1
$\begingroup$

$Yi=a+ B_1*X_i+ B_2*Z_i+\epsilon_i$, and suppose that $Zi$ is unobservable and not correlated with $X_i$. Is the OLS estimator of $B_1$ consistent by regressing $Y_i$ on a constant a and $X_i$?

I have no idea how to prove it.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.