Frisch-Waugh-Lovell Residual Regression

The Frisch-Waugh-Lovell (FWL) theorem is a fundamental result in linear regression. It shows that the multiple regression coefficient of a predictor can be exactly recovered by first "residualizing" both the response variable and the predictor of interest against all other predictors.

Interactive Experiment

In the interactive model, you can independently vary the predictor mixing, the coefficients, and the residual scale to observe how the theorem holds:

1. Change the Predictor mixing to see how the correlation between predictors affects the marginal coefficient.
2. Adjust the First coefficient and Second coefficient to observe their independent effects on the full regression output.
3. Observe that regardless of these parameters, the Residual-regression coefficient always exactly matches the Full first coefficient.