FWL Theorem: Meaning, Concept, and STATA practical [Video embedded]

In STATA

clear

set obs 1000

set seed 12345

gen y = rnormal()*10+10

gen x = y+runiform()*5

gen z = y*2+runiform()*y

reg y x z

reg y z

predict resid1,r

reg x z

predict resid2,r

reg resid1 resid2

reg y resid2

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