Rigobon, Roberto; Stoker, Thomas M. - 2003
We show how using censored regressors leads to expansion bias, or estimated effects that are proportionally too large …. We show the necessity of this effect in bivariate regression and illustrate the bias using results for normal regressors …. We study the bias when there is a censored regressor among many regressors, and we note how censoring can work to undo …