so I'm learning basic econometrics. I'm looking at a linear regression model on Stata where I have to qualitatively compare a restricted model, where y_i = b_1 + b_2 x_i and y_i = b_1 + b_2.x_i + b_3.z_i, where z_i is a dummy variable. I want to ask, what does it mean if the coefficient on x_i increases after the addition of the variable z_i?
Explaining the effect of adding a dummy variable on a restricted model
doodlingdee
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