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Re: st: Fwd: How to interpret regression?


From   Joerg Luedicke <[email protected]>
To   [email protected]
Subject   Re: st: Fwd: How to interpret regression?
Date   Tue, 25 Sep 2012 10:03:51 -0500

Maarten,

as far as I understand the original posting, continuous wealth is not
interacted with categorical wealth. As far as I can see she interacts
a set of dummies with continuous wealth, and then the set of dummies
with categorical wealth.

Joerg

On Tue, Sep 25, 2012 at 9:35 AM, Maarten Buis <[email protected]> wrote:
> On Tue, Sep 25, 2012 at 3:57 PM, Joerg Luedicke wrote:
>> In any case, I find it hard to see why you would include wealth
>> as a continuous variable and a categorical version of wealth in the
>> same model.
>
> In that case you'll get a step function with a slope, which is not
> necessarily wrong but often hard to justify. If that appeals to
> someone, than a linear spline will probably appeal to such a person
> even more, especially since a linear spline often makes much more
> sense. See -help mkspline-.
>
> -- Maarten
>
> ---------------------------------
> Maarten L. Buis
> WZB
> Reichpietschufer 50
> 10785 Berlin
> Germany
>
> http://www.maartenbuis.nl
> ---------------------------------
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