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Let B1(hat) and B2(hat) denote the estimated regression coefficients from a sample of size n for y = x1B1 + x2B2 + u.
Show that b1 = B1(hat) + (X1TX1)-1X1TX2B2(hat)
where b1 is the coefficient estimate from the regression of y on X1.
Macroeconomics, Economics
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