Re: st: coefficient interpretation in OLS

[John Antonakis <John.Antonakis@unil.ch>]

Hi Lynn:

If you want formal (and simple) explanation run through Eq. 2 to 5c in:

Antonakis, J., Bendahan, S., Jacquart, P., & Lalive, R. (2010). On 
making causal claims: A review and recommendations. The Leadership 
Quarterly, 21(6), 1086-1120.
HTH,
John

__________________________________________

Prof. John Antonakis
Faculty of Business and Economics
Department of Organizational Behavior
University of Lausanne
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Tel ++41 (0)21 692-3438
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http://www.hec.unil.ch/people/jantonakis

Associate Editor
The Leadership Quarterly
__________________________________________

On 17.08.2012 11:06, Nick Cox wrote:
> This really is covered in every decent regression text (in your case,
> perhaps, an econometrics text). It's an inevitable consequence of any
> correlations between X4 and X1, X2, X3.
>
> Nick
>
> On Fri, Aug 17, 2012 at 11:25 PM, Lynn Lee <lynn09v@gmail.com> wrote:
>
> > When I run simple OLS regression or pooled OLS regression, I find if I add
> > more variables to the model, the coefficient on specific explanatory
> > variable can vary in magnitude. For example,
> > Y1=beta+beta1*X1+beta2*X2+beta3*X3+error term;
> > Y2=alpha+alpha1*X1+ alpha2*X2+ alpha3*X3+ alpha4*X4+error term.
> > The absolute value of estimates of beta1 or alpha1 can increase or sometimes
> > decrease.  I am not confident to explain this theoretically. Is it related
> > to potential endogeneity issue?
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