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Re: st: marginal effect of the interaction term in the probit model using margins command


From   Ridhima Gupta <[email protected]>
To   [email protected]
Subject   Re: st: marginal effect of the interaction term in the probit model using margins command
Date   Thu, 30 Jun 2011 12:00:45 +0100

Thanks a lot Maarten. Your comments helped to put things in perspective.

On 6/30/11, Maarten Buis <[email protected]> wrote:
> On Thu, Jun 30, 2011 at 12:08 PM, Ridhima Gupta <[email protected]> wrote:
>> But Maarten doesn't this criticism apply to marginal effects in
>> general and not just the marginal effect on the intearction term?
>
> Marginal effects of main effects are often close enough to constant
> and they hardly ever switch signs. This is not true for marginal
> effects of interaction terms. I think of marginal effects as a linear
> model fitted on top of our non-linear model. Models are wrong, but as
> long as they are close enough, they can be useful. Average marginal
> effects for regular variables are often close enough so they can be
> useful. For interaction effects that linear model of the non-linear
> model just breaks down.
>
> -- Maarten
>
> --------------------------
> Maarten L. Buis
> Institut fuer Soziologie
> Universitaet Tuebingen
> Wilhelmstrasse 36
> 72074 Tuebingen
> Germany
>
>
> http://www.maartenbuis.nl
> --------------------------
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