How to Do Regression Adjustment
By the end of a typical introductory econometrics course students have become accustomed to the idea of “controlling” for covariates by adding them to the end of a linear regression model. But this familiarity can sometimes cause confusion when students later encounter regression adjustment , a widely-used approach to causal inference under the selection-on-observables assumption. While regression adjustment is simple in theory, the finer points of how and when to apply it in practice are much m
