Asymptotic Bias(cont) o So, thinking about the direction of the asymptotic bias is just like thinking about the direction of bias for an omitted variable Main difference is that asymptotic bias uses the population variance and covariance, while bias uses the sample counterparts o Remember, inconsistency is a large sample problem-it doesnt go away as add data Economics 20- Prof anderson 8Economics 20 - Prof. Anderson 8 Asymptotic Bias (cont) So, thinking about the direction of the asymptotic bias is just like thinking about the direction of bias for an omitted variable Main difference is that asymptotic bias uses the population variance and covariance, while bias uses the sample counterparts Remember, inconsistency is a large sample problem – it doesn’t go away as add data