Interactions in Regressions
Regression specifications frequently employ regressors that are defined as the product of two other regressors to form an interaction. Unfortunately, these models have a number of potential difficulties when it comes to interpretation. In this paper, we discuss two common aspects of these specifications that can lead to difficulties. The first is the change in parameter estimates and tstatistics when different definitions of dummy variables are used. The second involves an application of Fieller’s theorem to draw appropriate inferences from a regression with interaction variables.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 3 8344 5355
Fax: +61 3 8344 6899
Web page: http://www.economics.unimelb.edu.au
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:mlb:wpaper:952. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aminata Doumbia)
If references are entirely missing, you can add them using this form.