(Answered) 1. What effect would omitting an important explanatory variable in the model have on the property…

➤ How can I detect whether omitted variable bias is affecting my OLS results?
Test sensitivity by adding plausible controls and observing coefficient shifts. Use the Ramsey RESET test and inspect residual patterns for misspecification. Large changes in key coefficients or improved fit when adding variables suggest omission. You can also try proxies, instruments, or fixed effects to check robustness and reveal potential bias.