Gary King Homepage Previous: Why does larify give Up: Frequently Asked Questions Next: How do I know

Is it ok if some of my explanatory variables are statistically insignificant?

Yes. $ {\mathfrak{C}}$larify computes quantities of interest based on all estimated coefficients, regardless of their level of statistical significance. This is not problematic because the true quantities of interest are usually the predicted values, expected values, and first differences, not the coefficients themselves. It is usually better to focus on the confidence intervals $ {\mathfrak{C}}$larify reports for each quantity it computes than the standard errors of coefficients.



Gary King 2006-01-04