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From |
"Kyle K. Hood" <kyle.hood@yale.edu> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: Interaction terms in fixed effects analysis |

Date |
Sat, 07 Feb 2009 23:37:57 -0800 |

Tara-

1. In OLS, is the effect of expenditure in State 2 on *testscore* 11.16 units more than State 1? Or is it 11.16 - 0.0068 (-0.0068 is the coefficient on the interaction between state 2 and expenditure)

For state 1, you have this model: 97.34217 - 0.0024748*perstudent

Et cetera

2. In Fixed Effects, _Istate_2 and _Istate_3 were dropped. _IstaXpers~2 and _IstaXpers~3 were not. How would one interpret the coefficients on IstaXpers~2 and _IstaXpers~3 in the Fixed Effects model?

3. Does the coefficient on *perstudent* indicate that increasing expenditure across *all three states* is decreasing testscores by 0.0025 units? Or does *perstudent* refer to a specific state?

Thank you. I really appreciate your taking the time to help.

Do you know why scores go down as spending goes up? -- Kyle Hood Department of Economics Yale University New Haven, CT website: http://www.econ.yale.edu/~kkh25

begin:vcard fn:Kyle Hood n:Hood;Kyle org:Yale University;Economics adr;dom:;;;New Haven;CT email;internet:kyle.hood@yale.edu tel;work:203-500-3235 x-mozilla-html:TRUE url:http://www.econ.yale.edu/~kkh25 version:2.1 end:vcard

**Follow-Ups**:**Re: st: Interaction terms in fixed effects analysis***From:*tara.iyer@duke.edu

**References**:**st: Interaction terms in fixed effects analysis***From:*tara.iyer@duke.edu

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