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st: Interpretation of interaction term in nonlinear models


From   Suryadipta Roy <[email protected]>
To   [email protected]
Subject   st: Interpretation of interaction term in nonlinear models
Date   Thu, 30 May 2013 07:19:16 -0400

Dear Statalisters,

I am studying the effect of an interaction between a categorical
variable (0/1) and a continuous variable (0-6) on the dependent
variable in a nonlinear model (using -xtpoisson-). The value of the
coefficient using the -irr- option is 0.90, while the size of the
interaction term in the probability metric form is, of course, -0.11
(exp(-0.11) = 0.90). My basic question is, if it might be possible to
have a one-sentence interpretation of the value of the coefficient in
the multiplicative form (0.90), e.g. something in the lines of "the
effect of the categorical variable increases by a factor of 0.9 (i.e.
a 10% reduction of the dependent variable) due to an 1% increase in
the continuous variable"? Any suggestion in this regard will be highly
appreciated.

Sincerely,
Suryadipta Roy.
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