In discrete choice models the marginal effect of a variable of interest that is interacted with another variable differs from the marginal effect of a variable that is not interacted with any variable. The magnitude of the interaction effect is also not equal to the marginal effect of the interaction term. I present consistent estimators of both marginal and interaction effects in ordered response models. This procedure is general and can easily be extended to other discrete choice models.
History
Language
eng
Publication classification
CN Other journal article
Pagination
1-9
Publisher
Deakin University, School of Accounting, Economics and Finance
Place of publication
Geelong, Vic.
Series
School Working Paper - Economics Series ; SWP 2008/13