I am trying to read on how to interpret interaction effects in Heckman's selection model and come across with this article On Marginal and Interaction Effects: The Case of Heckit and Two-Part Models. The authors mention that they use a stata command to calculate the effects yet to specify what they used.

Let assume the regression of interest: $$ y = \alpha_0 + \alpha_1 x_1 + \alpha_2 x_2 + \alpha_i x_1*x_2 + \beta X + \epsilon $$ where $y$ is the limited dependent variable and $X$ is a set of controlling variable.

I am interested in interpreting $\alpha_i$, that is effect of the interaction term between $x_1$ and $x_2$.

Could any one please point out how to calculate, and interpret, the interaction effects in Heckit/Tobit model using Stata?

Thank you!

  • $\begingroup$ Be specific about your request: Are you asking for the Stata command for Heckman/Tobit or are you asking for the marginal effects from Heckman/Tobit? $\endgroup$ – Marquis de Carabas Jul 24 '15 at 0:24
  • $\begingroup$ Hi! I am asking for the Stata command for marginal effects of INTERACTIONS terms from Heckman/Tobit. I have edited my question. $\endgroup$ – Thien Jul 24 '15 at 0:45
  • $\begingroup$ Does this post help? $\endgroup$ – Dimitriy V. Masterov Jul 24 '15 at 1:51
  • $\begingroup$ Are $x_1$ and $x_2$ continuous or binary? $\endgroup$ – Dimitriy V. Masterov Jul 24 '15 at 6:02
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    $\begingroup$ @Thien I don't know the altruism literature at all, so can't help you there. $\endgroup$ – Dimitriy V. Masterov Jul 24 '15 at 21:19

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