Step-1 I run a regression with one independent variable (that is of primary interest to my research)
Y=b0 +b1 X1 + e
The result shows X has a negative coefficient, and significant (5% level)
Step-2 I run regression by including another variable
Y=b0 + b1 X1+b2 X2 + e
In result, b1 turns positive and b2 is also positive (and significant)
Step-3 Interaction
Y=b0 + b1 X1+b2 X2 + b3 X1 X2 + e
b1 turns negative (significant) and b3 is positive (and significant)
What is going on? Can anyone suggest the story behind this econometric exercise?
Related Posts with Main effect changes sign
pseudo panelhi everybody does anyone have a Do file for create cohort and do pseudo panel model? …
append multiple dtas, but the total observations is not rightHi, I have been struggling with my appending results for a while. I appended multiple dtas in the sa…
Creating and Saving graphs using loopDear Statalist Members, I am working on a panel data set. I want to create graphs and save graphs by…
Which model is best for my panel data?Dear Statalist members, I am using an unbalanced panel of 144 countries and 3300 obs to measure the…
CLAD with autocorrelated dataHello, I would like to modell arbitrage profits between cryprocurrency exchanges. I have have 9 pair…
Subscribe to:
Post Comments (Atom)
0 Response to Main effect changes sign
Post a Comment