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
Help with Data CleaningHi everyone, I require urgent assistance! I have 3 variables about means of transport whose values …
convert US 1990 census occupation codes to SEI Stata syntaxHello, I am converting US 1990 census occupation codes to SEI. I was wondering if anyone could share…
"Standalone" Arellano-Bond autocorrelation test and Test for heteroscedasticity when using gmmHello everyone, I am new to the list and I hope I am able to keep the rules of good conduct here. I …
ConditionalsHello How I can replacement for the value of an observation where there is no data with a conditiona…
How to interpret the marginal effects for dummy variables in logit regressionI ran a logit model, lhs is risk tolerance (=1 if respondent willing to take high risk; =0 otherwise…
Subscribe to:
Post Comments (Atom)
0 Response to Main effect changes sign
Post a Comment