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# st: Interaction of dummy variable with log-transformed variable

 From P K To statalist@hsphsun2.harvard.edu Subject st: Interaction of dummy variable with log-transformed variable Date Thu, 26 Aug 2010 23:28:19 +0000 (GMT)

```Hi,

I have trouble interpreting the following results and would appreciate your
help:

I ran an OLS regression with an interaction between a dummy variable and a
log-transformed variable on a continuous dependent variable.

i.e.,

DV = a + b*log-transformed IV + c*log-transformed variable*dummy variable

The coefficient of the interaction term on the dependent variable (DV) is 42.00,
the coefficient for the log-transformed variable is -6.00.

What is the the combined weighting factor on the DV?
- Interpretation of the log-transformed variable´s coefficient: One percent
increase in log-transformed variable increases DV by (-6/100) units.
- How can I interpret the coefficient of the interaction term of the
log-transformed variable and the dummy?

Thanks for your help!
Susan

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