All Questions
5 questions
3
votes
2
answers
131
views
How to interpret dummy variables and interactions terms on dummy variables in a regression?
Suppose I have a linear regression form of
$$
\log(Y) = \beta_0 + \beta_1X_2 + \beta_2X_3 + \beta_3X_1Z + \beta_4X_2Z + \epsilon
$$
where $X_1, X_2, X_3$ are binary and $X_1$ is omitted as a reference ...
- 4,260
1
vote
1
answer
619
views
Interpretation of two dummies interacted with one continuous variable
I am currently looking at the following equation using Stata and unsure of how to interpret the interaction terms when there are three variables interacted together (2 binary variables and one ...
- 11
1
vote
1
answer
81
views
What is the correct way to test multiple dummies?
I'm discussing a topic with classmates and the textbook does not address our concerns. In the following model:
$$wage = \beta_0 + \beta_1 female + \beta_2 educ + \beta_3 (female \times educ) + u$$
it ...
- 127
1
vote
0
answers
99
views
Interaction term btw. binary and continuous variable - dropping the intercept? [closed]
I run a linear regression with many dummy variables (in total 10). Thus to avoid the dummy variable trap, I dropped the intercept and included all dummy variables.
Now I'd like to have a look at the <...
- 11
4
votes
1
answer
382
views
Can I remove a dummy variable when it is not significant by itself, but its interaction with another variable is?
I have the following model based on the financial returns of a company as a dependent variable of a stock market index, and a dummy variable interacting with USD exchange rates to my currency. The ...
- 173