Re: st: interpretation of interaction terms

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

Thank you, Jose. This is very helpful.

Shehzad

On Dec 16 2008, Jose de Sousa wrote:

> Wooldridge  Introductory Econometrics
> Sorry for the misspelling.
> Best
> Jose
>
> > 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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