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From |
tara.iyer@duke.edu |

To |
statalist@hsphsun2.harvard.edu |

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

Date |
Mon, 9 Feb 2009 20:44:02 -0500 |

Thank you Clive. -Tara Quoting Clive Nicholas <clivelists@googlemail.com>:

Tara Iyer replied to Kyle K Hood: [...]1. Why would one subtract the coefficient from the regression constant in analyzing the effect of expenditure in State 1 ie. 97.34217 -0.0024748*perstudent?Because, if you look carefully, the coefficient on -perstudent- is negative. Kyle showed this to you without stating it in his reply.2. The thing is, I am estimating a different set of dummies with xi (I had to create the variable state with State 1 = 1 and so on), and _Istate_2 and _Istate_3. Given this, would one still subtract the coefficient on perstudent from the constant fro State 1? Similarly for State 2?Remember that the constant term, or intercept, shows the 'baseline' value of the dependent variable when all independent variables are set to 0. -state1- is dropped from your battery of state dummies because having all of them in would fully determine the model. Since -state1- = 0, it is thus subsumed into the intercept. However, if you wish to keep them all, take a look at Ben Jann's user-written -devcon- command, available from SSC: findit devcon or look here: http://ideas.repec.org/c/boc/bocode/s450603.html To gain a deeper understanding of how to interpret parameter estimates in interactive regression models, you are strongly urged to read the excellent articles by Bedeian and Mossholder (1994), Braumoller (2004) and Brambor, Clark and Golder (2006). -- Clive Nicholas [Please DO NOT mail me personally here, but at <clivenicholas@hotmail.com>. Please respond to contributions I make in a list thread here. Thanks!] Bedeian A and Mossholder KW (1994) "Simple Question, Not So Simple Answer: Interpreting Interaction Terms in Moderated Multiple Regression", Journal of Management 20(1): 159-65.Braumoeller BF (2004) "Hypothesis Testing and MultiplicativeInteraction Terms",International Organization 58(4): 807-20. Brambor T, Clark WR and Golder M (2006) "Understanding Interaction Models: Improving Empirical Analyses", Political Analysis 14(1): 63-82. * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

* * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

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

**Re: st: Interaction terms in fixed effects analysis***From:*"Kyle K. Hood" <kyle.hood@yale.edu>

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

**Re: st: Interaction terms in fixed effects analysis***From:*Clive Nicholas <clivelists@googlemail.com>

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