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Do I need to add main effect in a regression model with a Difference value between two variables?
Do I need to add main effect in a regression model with a Difference value between two variables?

Hi,

Here is my regression model:

regress y x1 x2 x3_x4; /* x3_x4 = x3 - x4 */

Do I need to add x3 (omitted x4 for the perfect collinearity ) in my regression model? And why? Is it similar to the regression with an interaction which needs to contain the main effect?

Thank you!

JC

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Do I need to add main effect in a regression model with a Difference value between two variables?

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