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Re: st: interpretation of interaction terms


From   David Airey <[email protected]>
To   [email protected]
Subject   Re: st: interpretation of interaction terms
Date   Mon, 15 Dec 2008 09:07:49 -0600

Yes, but I think the basic understanding or interpretation of regression coefficients for continuous or binary variables is not altered when a variable has been log transformed. It is true that interactions can be present or absent depending on whether or not a variable has been transformed, because interactions are scale dependent.

-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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