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st: Difference in difference and non-linear regression model
From
Thomas Werner <[email protected]>
To
[email protected]
Subject
st: Difference in difference and non-linear regression model
Date
Wed, 14 Nov 2012 17:26:18 +0100
Dear Statalisters
I want to see if a statutory minimum wage had any effect on the
probability of price increases respectively decreases after its
implementation.
The dataset I use contains among others monthly firm-level price (Y)
state of business (S) and demand data (D) of business surveys.
Most of the variables have three categories, whereby the answers are
coded as 1 ("increased"), 0 ("not changed") and -1 ("decreased").
The independent variables are recoded as binary variables but there are
also continuous control variables like capacity utilization.
I have to run a stereotyped ordered logit model because the parallel
regression assumption of the ordered logit model is violated.
Actually I want to run a diff-in-diff model like this:
slogit = treat + post + treat*post + lag_price + D_increase + D_decrease
+ S_increase + S_decrease + material_price + ... + error
But I don’t know how to compute the marginal effect of the interaction
term (treat*post) because the inteff command doesn’t work as a result of
the trichotomic shape of the dependent variable and the margins command
isn’t a viable alternative.
As far as I can see the interaction effect should be equal to the
difference of cross differences
Is there a way to compute these effect with stata?
Best
Thomas Werner
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