Economics, Econometrics and Finance
4 years ago

New formula reveals hidden impacts of triple dummy variable interactions in models.

Marginal effects in the probit model with a triple dummy variable interaction term
Thomas Cornelißen, Katja Sonderhof

Paper Summary

The article explains how to calculate the effects of certain variables in a probit model with a triple dummy variable interaction term. This is important for understanding how different factors influence the outcome of a binary event. The researchers developed a method called inteff3 in Stata to compute these effects and their standard errors.

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