Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323522 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
GLO Discussion Paper No. 1646
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
The most widely used textbooks on Introductory Econometrics conflate three distinct population parameters: the population regression function (PRF), the conditional expectation function (CEF), and the causal effect. They also incorrectly suggest, and sometimes state, that the Conditional Mean Zero assumption implies causal interpretation of regression coefficients. I highlight these issues and show that by incorporating new notation these limitations can easily be overcome.
Subjects: 
Regressions
Least Squares
Conditional Mean Zero
Causal Inference
JEL: 
A22
C18
Document Type: 
Working Paper

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