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Re: st: Testing interaction terms / mutually exclusive variables


From   Phil Schumm <pschumm@uchicago.edu>
To   <statalist@hsphsun2.harvard.edu>
Subject   Re: st: Testing interaction terms / mutually exclusive variables
Date   Thu, 20 Jun 2013 12:11:45 -0500

On Jun 20, 2013, at 12:01 PM, Verena Dill <dill@uni-trier.de> wrote:
> I want to test whether or not the coeffients are the same (_b[var1]=_b[bar2]) and take into account that they are mutually exclusive.


There is still a lack of clarity in what you want here, but I'm guessing that you want (immediately following your regression) is

    test service = manufacturing = 0

where service and manufacturing are your two dummy variables distinguishing service sector firms and manufacturing sector firms from all others.  This will test the null hypothesis that the average outcome is equivalent for all three types of firms.


-- Phil


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