POL222H1 Chapter Notes - Chapter 8: Automatic Control, Confounding
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There is no automatic control in observational research. B1 represents the effect of x on y while holding constant the effects of z. Multiple regression coefficients always represent the effects of a one-point increase in that particular independent variable, while controlling for the effects of all other independent variables in the model. The more independent variables in the regression model, the more certainty you can say causal relationship exists. 9. 8: an example from the literature: competing theories of how. Friendly relations are more likely to trade with one another than states engaged in conflict. Conflict dampens trade through embargoes or by raising risks for firms that wish to engage in cross-border trading. Trade will be higher when both nations are democracies. But does not account for other explanations --> not a fully multivariate model in which the theories can compete for explanatory power. Found that if you account for everything, alliance impact is negative not positive.