Notice: On March 31, it was **announced** that Statalist is moving from an email list to a **forum**. The old list will shut down on April 23, and its replacement, **statalist.org** is already up and running.

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

From |
Nick Kohn <coffeemug.nick@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
st: Simple question about interpreting an econometric model |

Date |
Fri, 23 Dec 2011 14:21:45 +0100 |

Hi, My specification is as follows: Y = b1*X1 + b2*X1*X1down + b3*X1*X1down*X2 + b3*X1*X1down*X3 X1down is an indicator variable that is = 0 when X1 > 0 Thus, the sensitivity of Y to X1 when X1 > 0 is b1, and the sensitivity of Y to X1 when X1 < 0 is b1+b2 + b3 * X2 + b4 * X3 I'm looking at how X2 and X3 affect this sensitivity when X1 < 0 Now, my problem is that I'm getting a bit confused when I want to interpret the coefficients. Can you please tell me whether the following statement is correct: "The sensitivity when X1 > 0 in a firm with AVERAGE VALUES OF X2 and X3 is b1, and the sensitivity when X1 < 0 is b1 + b2 + b3 * average(X2) + b4 * average(X3)" I need to compare them, and I cannot change my specification at this point. My biggest uncertainty is about the capitalized part statement above, because if it is correct, I can compare the sensitivities by plugging in the average values of X2 and X3 into the last part of the statement. Thanks! * * 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/

**Follow-Ups**:**Re: st: Simple question about interpreting an econometric model***From:*David Hoaglin <dchoaglin@gmail.com>

- Prev by Date:
**st: How to improve accuracy in numerical integrations using Stata** - Next by Date:
**Re: st: How to improve accuracy in numerical integrations using Stata** - Previous by thread:
**st: How to improve accuracy in numerical integrations using Stata** - Next by thread:
**Re: st: Simple question about interpreting an econometric model** - Index(es):