Testing Hypotheses About Interaction Terms in Nonlinear Models
Posted: 15 Jul 2009
Date Written: July 15, 2009
We further examine the interaction effect in nonlinear models that has recently been discussed by Ai and Norton (2003). Statistical tests about partial effects and interaction terms are not necessarily informative in the context of the estimated model. We suggest more useful ways that do not involve statistical testing to examine the interaction effect in binary choice models.
Keywords: Interaction effect, Interaction term, Partial effect, Probit, Logit, Nonlinear Models
JEL Classification: C12, C25 , C51
Suggested Citation: Suggested Citation