Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/162649 
Autor:innen: 
Erscheinungsjahr: 
2017
Schriftenreihe/Nr.: 
MAGKS Joint Discussion Paper Series in Economics No. 03-2017
Verlag: 
Philipps-University Marburg, School of Business and Economics, Marburg
Zusammenfassung: 
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 collinearityinduced 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.
Schlagwörter: 
standard-error-decreasing complementarity
multivariate regression model
standard error
econometric methodology
multicollinearity
collinearity
JEL: 
C1
B4
Dokumentart: 
Working Paper

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