The significance of the interaction term should give results that are equivalent to a test for the significance of the difference of the coefficients when you estimate regressions on each subsample. The individual coefficients in such regressions may be significant, but that is not the issue; it is whether they are significantly different from one another. David Greenberg, Sociology Department, New York University
----- Original Message -----
From: Shahbaz Ali Sheikh <[email protected]>
Date: Monday, October 13, 2003 5:01 pm
Subject: st: Two models or one dummy
> Hi everyone,
>
> Is there any test in STATA that helps you decide, whether to run
> two seperate
> models by dividing the sample on the basis of an exogenous
> variable or
> include a dummy variable.
>
> I confused because when I run the regressions on a single model
> including the
> dummy, the interactions are insignificant. However, when I run
> seperate
> models by dividing the sample on the basis of the dummy taking 1
> and 0, I get
> completely different and signficant results.
>
> Is there a way in STATA to test when we should run seperate models
> instead of
> a including a dummy varible?
> Thanks.
> Shahbaz
> _____________________________________________
> PhD Candidate
> Brandeis International Business School
> Brandeis University, MS 032,
>
>
>
>
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