Interaction terms in logit and probit models
Economics LettersPublished 19 May 2003
Chunrong Ai, Edward C. Norton
Citations5,761
SJR quartileQ2
SJR score0.76
SNIP0.98
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Abstract
The magnitude of the interaction effect in nonlinear models does not equal the marginal effect of the interaction term, can be of opposite sign, and its statistical significance is not calculated by standard software. We present the correct way to estimate the magnitude and standard errors of the interaction effect in nonlinear models.
Keywords
Economics, Econometrics and FinanceBusiness, Management and Accounting
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