I'm running a Stata diff-in-diff regression by using an interaction term. I then try to calculate the semi-elasticity of the interaction term. The Stata code is as follows:
reg interp_tf year year_post_mayo reg_length dem_administration post_mayo is_interpretative interpretative_post_mayo, cluster(agency_num)
margins, eydx(interpretative_post_mayo) post
The interaction term interacts 2 dummy variables. I've seen some suggestions that this might be inappropriate, for example this paper: https://onlinelibrary.wiley.com/doi/pdf/10.1111/boer.12120. But the paper doesn't fully explain, and I don't understand, what the problem might be.
In addition, the margins command produces a result lower than -1, which I don't know how to interpret--e.g., if it is -1.31, does that imply a -131% change? Is that possible?
Any thoughts on either of these questions would be greatly appreciated!