Interpreting interaction terms in linear and non-linear models: A cautionary tale

Interaction terms are often misinterpreted in the empirical economics literature by assuming that the coefficient of interest represents unconditional marginal changes. I present the correct way to estimate conditional marginal changes in a series of non-linear models including (ordered) logit/probit regressions, censored and truncated regressions. The linear regression model is used as the benchmark case.

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Year of publication:	2011-07
Authors:	Drichoutis, Andreas

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Drichoutis, Andreas (2011): Interpreting interaction terms in linear and non-linear models: A cautionary tale.
Classification:	C51 - Model Construction and Estimation ; C12 - Hypothesis Testing ; C24 - Truncated and Censored Models ; C25 - Discrete Regression and Qualitative Choice Models
Source:	BASE

Persistent link: https://www.econbiz.de/10015228435