
Problem:
Conditioning on covariates is standard practice in political research, but scholars often overlook a critical issue: unobserved variables and their interactions with observed ones.
Key Insight:
This paper demonstrates that when two confounding factors act in opposition (one strengthens the bias while the other reduces it), adding an extra variable can actually increase bias in your results. This seemingly counterintuitive finding occurs even when standard balance tests suggest improvement.
Implications & Findings:
This research highlights a crucial nuance about omitted variables that challenges conventional wisdom.

| Omitted Variables, Countervailing Effects, and The Possibility of Overadjustment was authored by Kevin Clarke, Brenton Kenkel and Miguel Rueda. It was published by Cambridge in PSR&M in 2018. |