A Reinterpretation of Interactions in Regressions

No 1015, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: Regression specifications in applied econometrics frequently employ regressors that are defined as the product of two other regressors to form an interaction. Unfortunately, the interpretation of the results of these models is not as straight forward as in the linear case. In this paper, we present a method for drawing inferences for interaction models by defining the partial influence function. We present an example that demonstrates how one may draw new inferences by constructing the confidence intervals for the partial influence functions based on the traditional published findings for regressions with interaction terms.

Keywords: Interaction effects; dummy variables; linear transformation; Fieller method (search for similar items in EconPapers)
JEL-codes: C12 C51 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2007
New Economics Papers: this item is included in nep-ecm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://fbe.unimelb.edu.au/__data/assets/pdf_file/0008/802862/1015.pdf (application/pdf)

Related works:
Journal Article: A reinterpretation of interactions in regressions (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mlb:wpaper:1015

Access Statistics for this paper

More papers in Department of Economics - Working Papers Series from The University of Melbourne Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Dandapani Lokanathan ().