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Re: st: How to test the statistical significance of difference between parameters obtained from xtprobit model in two sub-sample


From   Maarten buis <[email protected]>
To   [email protected]
Subject   Re: st: How to test the statistical significance of difference between parameters obtained from xtprobit model in two sub-sample
Date   Mon, 4 Apr 2011 08:33:38 +0100 (BST)

--- On Sun, 3/4/11, ramesh wrote:
> I am working with the xtprobit model. I have two
> sub-samples and want to test whether the coefficients of
> the two sub-samples are statistically different. 

Yes, estimate one model on the entire sample and include
interaction terms between all coefficients and the dummy
variable indicating which sub-sample one belongs to. Than
test whether all interaction terms are equal to zero (using
-test-). 

The interpretation of these interaction terms are more 
straightforward in -xtlogit- as is discussed in:

M.L. Buis (2010) "Stata tip 87: Interpretation of interactions 
in non-linear models", The Stata Journal, 10(2), pp. 305-308.

Hope this helps,
Maarten

--------------------------
Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen
Germany

http://www.maartenbuis.nl
--------------------------

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