To estimate the partial effect of x2 on y while x3 is kept


To estimate the partial effect of X2 on y while X3 is kept constant, we need to estimate a regression model like y = β12x23x3+u. Some students find this counter intuitive: if we're keeping x3 constant, why should it be in our model at all? Explain intuitively why this is the right thing to do.

Solution Preview :

Prepared by a verified Expert
Econometrics: To estimate the partial effect of x2 on y while x3 is kept
Reference No:- TGS01516140

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)