There are three variables: logsal, educ and logsalbegin. I'm seeing in a book the results of DMlogsal (dependent) on DMeduc and DMlogsalbegin (independent). The text says: "the residual of the regression (which correspond to taking the original observations in deviation from the sample mean and which are denotes DM) are related in here".
I am trying to figure out how did they come up with this DM...how do I calculate these new series?
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