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Re: st: interpretation of interaction terms


From   Shehzad Ali <sia500@york.ac.uk>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: interpretation of interaction terms
Date   15 Dec 2008 14:09:27 +0000

Thanks, Dave, for your reply. My question is about interaction of log-transformed and untransformed variables (continuous or dummy). The links suggested don't discuss interpretation of interactions of transformed variables.

Friedrich: This is not a homework/exam question :) I am running an analysis where income variable in log-transformed and is interacted with programme membership variable (dummy) and regressed on log-transformed healthcare expenditure variable. There is also interactions between log-transformed income and level of education (untransformed continuous) variables and also between two dummy variables. These are all regressed on log-transformed dependent variable.

Thank you,

Shehzad


On Dec 15 2008, David Airey wrote:

See these pages:

http://www.ats.ucla.edu/stat/stata/webbooks/reg/default.htm

http://www.ats.ucla.edu/stat/stata/seminars/stata_vibl/default.htm

-Dave

On Dec 14, 2008, at 7:31 PM, Shehzad Ali wrote:

Hi,

Could someone please help me interpret the following:

1. Coefficient on an interaction term for a dummy and log- transformed variable in an OLS model when the dependent variable is in natural units or is also log-transformed

2. Coefficient on an interaction term for an untransformed continuous and log-transformed variable in an OLS model when the dependent variable is in natural units or is also log-transformed

3. Coefficient on an interaction term between a dummy and log- transformed variable in a probit regression

Thank you,

Shehzad
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