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st: Interaction of dummy variable with log-transformed variable


From   P K <statistics_2009@yahoo.de>
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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