[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/wly/amposc/v54y2010i1p248-266.html
   My bibliography  Save this article

Testing for Interaction in Binary Logit and Probit Models: Is a Product Term Essential?

Author

Listed:
  • William D. Berry
  • Jacqueline H. R. DeMeritt
  • Justin Esarey
Abstract
Political scientists presenting binary dependent variable (BDV) models often hypothesize that variables interact to influence the probability of an event, Pr(Y). The current typical approach to testing such hypotheses is (1) estimate a logit or probit model with a product term, (2) test the hypothesis by determining whether the coefficient for this term is statistically significant, and (3) characterize the nature of any interaction detected by describing how the estimated effect of one variable on Pr(Y) varies with the value of another. This approach makes a statistically significant product term necessary to support the interaction hypothesis. We show that a statistically significant product term is neither necessary nor sufficient for variables to interact meaningfully in influencing Pr(Y). Indeed, even when a logit or probit model contains no product term, the effect of one variable on Pr(Y) may be strongly related to the value of another. We present a strategy for testing for interaction in a BDV model, including guidance on when to include a product term.

Suggested Citation

  • William D. Berry & Jacqueline H. R. DeMeritt & Justin Esarey, 2010. "Testing for Interaction in Binary Logit and Probit Models: Is a Product Term Essential?," American Journal of Political Science, John Wiley & Sons, vol. 54(1), pages 248-266, January.
    • Handle: RePEc:wly:amposc:v:54:y:2010:i:1:p:248-266
    DOI: 10.1111/j.1540-5907.2009.00429.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1540-5907.2009.00429.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-5907.2009.00429.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paul D. Senese, 2005. "Territory, Contiguity, and International Conflict: Assessing a New Joint Explanation," American Journal of Political Science, John Wiley & Sons, vol. 49(4), pages 769-779, October.
    2. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    3. Braumoeller, Bear F., 2004. "Hypothesis Testing and Multiplicative Interaction Terms," International Organization, Cambridge University Press, vol. 58(4), pages 807-820, October.
    4. Beck, Nathaniel & King, Gary & Zeng, Langche, 2000. "Improving Quantitative Studies of International Conflict: A Conjecture," American Political Science Review, Cambridge University Press, vol. 94(1), pages 21-35, March.
    5. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
    6. Altman, Micah & McDonald, Michael P., 2003. "Replication with Attention to Numerical Accuracy," Political Analysis, Cambridge University Press, vol. 11(3), pages 302-307, July.
    7. John T. Scholz & Cheng‐Lung Wang, 2006. "Cooptation or Transformation? Local Policy Networks and Federal Regulatory Enforcement," American Journal of Political Science, John Wiley & Sons, vol. 50(1), pages 81-97, January.
    8. Matthew Søberg Shugart & Melody Ellis Valdini & Kati Suominen, 2005. "Looking for Locals: Voter Information Demands and Personal Vote‐Earning Attributes of Legislators under Proportional Representation," American Journal of Political Science, John Wiley & Sons, vol. 49(2), pages 437-449, April.
    9. Berry, Frances Stokes & Berry, William D., 1990. "State Lottery Adoptions as Policy Innovations: An Event History Analysis," American Political Science Review, Cambridge University Press, vol. 84(2), pages 395-415, June.
    10. King, Gary & Zeng, Langche, 2006. "The Dangers of Extreme Counterfactuals," Political Analysis, Cambridge University Press, vol. 14(2), pages 131-159, April.
    11. Nikolay Marinov, 2005. "Do Economic Sanctions Destabilize Country Leaders?," American Journal of Political Science, John Wiley & Sons, vol. 49(3), pages 564-576, July.
    12. Markus Prior, 2005. "News vs. Entertainment: How Increasing Media Choice Widens Gaps in Political Knowledge and Turnout," American Journal of Political Science, John Wiley & Sons, vol. 49(3), pages 577-592, July.
    13. Nicholas A. Valentino & David O. Sears, 2005. "Old Times There Are Not Forgotten: Race and Partisan Realignment in the Contemporary South," American Journal of Political Science, John Wiley & Sons, vol. 49(3), pages 672-688, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Choong-Nam Kang, 2017. "Capability revisited: Ally’s capability and dispute initiation1," Conflict Management and Peace Science, Peace Science Society (International), vol. 34(5), pages 546-571, September.
    2. Armin Mertens & Christine Trampusch & Florian Fastenrath & Rebecca Wangemann, 2021. "The political economy of local government financialization and the role of policy diffusion," Regulation & Governance, John Wiley & Sons, vol. 15(2), pages 370-387, April.
    3. Sam R. Bell, 2017. "Power, territory, and interstate conflict," Conflict Management and Peace Science, Peace Science Society (International), vol. 34(2), pages 160-175, March.
    4. Mohl, Philipp & Hagen, Tobias, 2011. "Do EU structural funds promote regional employment? Evidence from dynamic panel data models," Working Paper Series 1403, European Central Bank.
    5. Machava, Agostinho, 2017. "The Macroeconomic Determinants of the Pass-Through from the Market Interest Rate to the Bank Lending Rate in Mozambique," Umeå Economic Studies 954, Umeå University, Department of Economics.
    6. Kyriaki Kosmidou & Dimitrios Kousenidis & Anestis Ladas & Christos Negkakis, 2024. "Climate‐related performance and stock price crash risk," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 33(2), pages 113-148, May.
    7. Ongena, Steven & Schindele, Ibolya & Vonnák, Dzsamila, 2021. "In lands of foreign currency credit, bank lending channels run through?," Journal of International Economics, Elsevier, vol. 129(C).
    8. Gunitsky, Seva, 2014. "From Shocks to Waves: Hegemonic Transitions and Democratization in the Twentieth Century," International Organization, Cambridge University Press, vol. 68(3), pages 561-597, July.
    9. Susan Hannah Allen, 2008. "The Domestic Political Costs of Economic Sanctions," Journal of Conflict Resolution, Peace Science Society (International), vol. 52(6), pages 916-944, December.
    10. Gravelle, Timothy B. & Lachapelle, Erick, 2015. "Politics, proximity and the pipeline: Mapping public attitudes toward Keystone XL," Energy Policy, Elsevier, vol. 83(C), pages 99-108.
    11. Morrison Kevin M, 2011. "As the World Bank Turns: Determinants of IDA Lending in the Cold War and After," Business and Politics, De Gruyter, vol. 13(2), pages 1-29, August.
    12. Anne Rasmussen, 2011. "Early conclusion in bicameral bargaining: Evidence from the co-decision legislative procedure of the European Union," European Union Politics, , vol. 12(1), pages 41-64, March.
    13. Barbara Vis, 2012. "The Comparative Advantages of fsQCA and Regression Analysis for Moderately Large-N Analyses," Sociological Methods & Research, , vol. 41(1), pages 168-198, February.
    14. Doumpos, Michael & Gaganis, Chrysovalantis & Pasiouras, Fotios, 2015. "Central bank independence, financial supervision structure and bank soundness: An empirical analysis around the crisis," Journal of Banking & Finance, Elsevier, vol. 61(S1), pages 69-83.
    15. Nick Drydakis, 2015. "The effect of sexual activity on wages," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(2), pages 192-215, May.
    16. Nick Drydakis, 2014. "Bullying at school and labour market outcomes," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(8), pages 1185-1211, October.
    17. Oona A. Hathaway, 2007. "Why Do Countries Commit to Human Rights Treaties?," Journal of Conflict Resolution, Peace Science Society (International), vol. 51(4), pages 588-621, August.
    18. John W. Dawson, 2015. "The Empirical Volatility-Growth Relationship: Is Economic Freedom the Missing Link?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 30(Summer 20), pages 61-82.
    19. Andreas Sachs & Frauke Schleer, 2019. "Labor Market Performance in OECD Countries: The Role of Institutional Interdependencies," International Economic Journal, Taylor & Francis Journals, vol. 33(3), pages 431-454, July.
    20. Jun Ando, 2018. "Externality of Defense Expenditure in the United States: A New Analytical Technique to Overcome Multicollinearity," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(7), pages 794-808, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:amposc:v:54:y:2010:i:1:p:248-266. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1540-5907 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.