A reinterpretation of interactions in regressions
AbstractRegression specifications in applied econometrics frequently employ regressors, which are defined as the product of two other regressors to form an interaction. Unfortunately, the interpretation of the results of these models is not as straight forward as in the linear case. In this article, we present a method for drawing inferences for interaction models by defining the partial influence (PI) function. We present an example that demonstrates how one may draw new inferences by constructing the confidence intervals for the PI functions based on the traditional published findings for regressions with interaction terms.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 17 (2010)
Issue (Month): 5 ()
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Web page: http://www.tandfonline.com/RAEL20
Other versions of this item:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
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