I have a question on how to properly interpret the estimates of a CLOGIT including an interactive term (between two dummy variables) into the model, but in which one of the dummy variables (its constitutive term) is being dropped due to multicollinearity.
I have the following variables:
Dependent variable:
PresidentsParty = categorical variable with several categories (8)
Independent variables:
Vote of no confidence = dummy (1 = yes; 0 = no) Multiparty system= dummy (1 = yes; 0 = no)
I am trying to estimate the following model:
PresidentsParty = B1*Vote of no confidence + B2*Multiparty System + B3*(Vote of no confidence*Multiparty system)
I am using Stata clogit command for estimating the model. The problem is: B2*Multiparty System is being dropped due to multicollinearity. Everything else is running. Therefore, my questions are:
I have the following variables:
Dependent variable:
PresidentsParty = categorical variable with several categories (8)
Independent variables:
Vote of no confidence = dummy (1 = yes; 0 = no) Multiparty system= dummy (1 = yes; 0 = no)
I am trying to estimate the following model:
PresidentsParty = B1*Vote of no confidence + B2*Multiparty System + B3*(Vote of no confidence*Multiparty system)
I am using Stata clogit command for estimating the model. The problem is: B2*Multiparty System is being dropped due to multicollinearity. Everything else is running. Therefore, my questions are:
- Considering that "B2*Multiparty System" is being dropped, could I go ahead and run the model specified?
- How can I know/interpret the effect of "Multiparty System" (alone) on my dependent variable "PresidentsParty" (taking into account that "B2*Multiparty System" is dropped)?
- Considering that "B2*Multiparty System" is being dropped, do I still need the constitutive term "B1*Vote of no confidence" in my model or should I just run the interactive term? [i.e., PresidentsParty = B1*(Vote of no confidence*Multiparty system)] In this case, how do I interpret my coefficients? And question 2 remains: How can I know the effect of only "B2*Multiparty System" on my dependent variable "PresidentsParty"?
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