Artikel
On Interaction Effects: The Case of Heckit and Two-part Models
Interaction effects capture the impact of one explanatory variable x1 on the marginal effect of another explanatory variable x2. To explore interaction effects, so-called interaction terms x1x2 are typically included in estimation specifications. While in linear models the effect of a marginal change in the interaction term is equal to the interaction effect, this equality generally does not hold in non-linear specifications (AI, NORTON, 2003). This paper provides for a general derivation of interaction effects in both linear and non-linear models and calculates the formulae of the interaction effects resulting from HECKMAN's sample selection model as well as the Two-Part Model, two regression models commonly applied to data with a large fraction of either missing or zero values in the dependent variable, respectively. Drawing on a survey of automobile use from Germany, we argue that while it is important to test for the significance of interaction effects, their size conveys limited substantive content. More meaningful, and also more easy to grasp, are the conditional marginal effects pertaining to two variables that are assumed to interact.
- Language
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Englisch
- Bibliographic citation
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Journal: Jahrbücher f. Nationalökonomie u. Statistik ; ISSN: 0021-4027 ; Volume: 233 ; Year: 2013 ; Issue: 1 ; Pages: 22-38 ; Stuttgart: Lucius & Lucius
- Classification
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Wirtschaft
- Subject
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Truncated regression models
interaction terms
- Event
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Geistige Schöpfung
- (who)
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Frondel, Manuel
Vance, Colin
- Event
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Veröffentlichung
- (who)
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Lucius & Lucius
- (where)
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Stuttgart
- (when)
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2013
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Frondel, Manuel
- Vance, Colin
- Lucius & Lucius
Time of origin
- 2013
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On Interaction Effects: The Case of Heckit and Two-Part Models
From fuel taxation to efficiency standards: A wrong turn in European climate protection?
On Marginal and Interaction Effects: The Case of Heckit and Two-Part Models
Rarely Enjoyed? A Count Data Analysis of Ridership in Germany's Public Transport
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Re-Identifying the Rebound – What About Asymmetry?
Future Pain at the Diesel Pump? Potential Effects of the European Commission's Energy Taxation Proposal
Driving for Fun? – A Comparison of Weekdays and Weekend Travel
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Rarely Enjoyed? A Count Data Analysis of Transit Ridership in Germany's Public Transport