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  • How to analyze the effect of control variables on the IV in a regression model?

    Dear Stata Community,

    For my thesis I am running a variety of multi- regressions and came across a problem:
    How would I formulate the change of the significance and Coefficient of the IV when I omitt a controll variables or add a new control.
    That seems kind of an easy question, but I am struggling to put the changes in words ( and probably also lack the full understanding of what is going on)

    Thank's for your time!

    Marius

  • #2
    If I understand your question correctly you want to explain why the coefficient and the significance of a variable changes when you add or omit another control variables??

    And the significance of your IV should be relevant only to your endogenous variables.

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    • #3
      You would increase your chances of a useful answer if you include Stata code in code delimiters, Stata output, and sample data using dataex - see FAQ on asking questions.

      I'm not sure what an IV means to you. Your parameter on x is the influence of x holding all the other explanatory variables constant. It is estimated using the variance in x that is not shared with the other included variables. So, adding or subtracting control variables changes what you're holding constant and what variance is shared with the other explanatory variables and so may change the parameter on a given variable.

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