Statalist


[Date Prev][Date Next][Thread Prev][Thread Next][Date index][Thread index]

Re: st: re: general econometrics question


From   "Suryadipta Roy" <sroy2138@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: re: general econometrics question
Date   Fri, 23 Nov 2007 08:49:11 -0600

Kit,

Thank you very much for your reply. I have interacted the X term with
the institutional factor Z. Given the nature of the dependence, I was
thinking of interacting Z with something like (Xbar  -  X(i)).

Thanks,
Suryadipta.

On 11/22/07, Kit Baum <kitbaum@mac.com> wrote:
> Suryadipta said
>
> the effect of the most important explanatory variable on the
> dependent variable is subject to whether countries are widely
> different in terms of their institutions. For countries that are
> similar in their institutional structure, this explanatory variable is
> not important in explaining (changes in) the dependent variable. Can
> anyone suggest/point me towards proper econometric tests in this case?
>
> If the effect of X depends on institutiional factor Z, then you
> should be using an interaction of X and Z (as well as a main effect
> of Z) because you want dY/dX to differ according to a country's level
> of Z.
>
>
> Kit Baum, Boston College Economics and DIW Berlin
> http://ideas.repec.org/e/pba1.html
> An Introduction to Modern Econometrics Using Stata:
> http://www.stata-press.com/books/imeus.html
>
>
> *
> *   For searches and help try:
> *   http://www.stata.com/support/faqs/res/findit.html
> *   http://www.stata.com/support/statalist/faq
> *   http://www.ats.ucla.edu/stat/stata/
>
*
*   For searches and help try:
*   http://www.stata.com/support/faqs/res/findit.html
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/



© Copyright 1996–2014 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   What's new   |   Site index