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Re: st: -mfx-, categorical variables or dummy?, interpretation of betas with reg and probit


From   Richard Williams <Richard.A.Williams.5@ND.edu>
To   statalist@hsphsun2.harvard.edu, statalist@hsphsun2.harvard.edu
Subject   Re: st: -mfx-, categorical variables or dummy?, interpretation of betas with reg and probit
Date   Tue, 20 May 2008 11:54:23 -0500

At 07:28 AM 5/20/2008, Nirina F wrote:
Hello again,

1- what is the star next to some variables in mfx. I believe it's not
an indication of significance because if I checked  the pvalue, some
of the variables with stars are not significant?
You should be seeing this message at the bottom of the mfx table:

(*) dy/dx is for discrete change of dummy variable from 0 to 1

If for some reason you want the dummy treated as continuous, use the -nodiscrete- option of mfx.


2- What is the difference in having a dummy 0-1 or having a
categorical variable 1-2? I run the regressions and I only found a
difference in the value of constants but not in the coefficients of
variables or Rsq or anything else.
I wonder if using 0-1 is easier for interpretation. And which one is
the best way?
You can code a dummy variable however you want - 0-1, 1-2. Or, if 7 happens to be your lucky number, you can use 777-7777. Usually 0-1 is easiest to interpret (and some programs may behave differently if you are not using 0-1 coding).

-------------------------------------------
Richard Williams, Notre Dame Dept of Sociology
OFFICE: (574)631-6668, (574)631-6463
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EMAIL: Richard.A.Williams.5@ND.Edu
WWW: http://www.nd.edu/~rwilliam

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