Estimator of What? A Note on Teaching Regressions in Introductory Econometrics

Deepti Goel ()
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Deepti Goel: Pitzer College

No 18007, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The most widely used textbooks today 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.

Keywords: conditional mean zero; unbiased estimator; causal effects (search for similar items in EconPapers)
JEL-codes: A22 C18 (search for similar items in EconPapers)
Date: 2025-07
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