Re: st: interpretation of interaction terms

[Shehzad Ali <sia500@york.ac.uk>]

Thanks, Rene and Dave. Semi-elasticity explanation makes good sense. Please 
feel free to share any references if you get a chance.

Thanks for your help.
Shehzad

On Dec 15 2008, René Geppert wrote:

> In an all linear specification, regression coefficients are usually 
> interpreted as marginal effects.
> Accordingly, in a log-log-specification, regression coefficients can be 
> thought of elasticities.
> And for a lin-log-model, hence, the coefficient represent something like 
> semi-elasticities.
>
> -René
>
> David Airey schrieb:
> > Yes, but I think the basic understanding or interpretation of 
> > regression coefficients for continuous or binary variables is not 
> > altered when a variable has been log transformed. It is true that 
> > interactions can be present or absent depending on whether or not a 
> > variable has been transformed, because interactions are scale dependent.
> >
> > -Dave
> >
> > On Dec 14, 2008, at 7:31 PM, Shehzad Ali wrote:
> >
> > > Hi,
> > >
> > > Could someone please help me interpret the following:
> > >
> > > 1. Coefficient on an interaction term for a dummy and log-transformed 
> > > variable in an OLS model when the dependent variable is in natural 
> > > units or is also log-transformed
> > >
> > > 2. Coefficient on an interaction term for an untransformed continuous 
> > > and log-transformed variable in an OLS model when the dependent 
> > > variable is in natural units or is also log-transformed
> > >
> > > 3. Coefficient on an interaction term between a dummy and 
> > > log-transformed variable in a probit regression
> > >
> > > Thank you,
> > >
> > > Shehzad
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