Hi all,
I'm estimating a log-linear model with panel data using xtreg where my model is as follows:
log(y1/y2) = B0 + B1(policy) + B2(infant)+ B3(policy*infant) + B4log(x1) + B5 (x2) + B6(year) + B7(state)
where policy = 0 for control individuals living in states before the policy and = 1 for treated individuals living in states after the policy was introduced (the policy introduction is staggered across time)
infant = 1 only at the year the individual has an infant and = 0 otherwise
x1 is log of wages
x2 are other demographic and economic factors that are not log-transformed
How can I interpret the coefficient on B3 which is the instantaneous effect of the policy only during the year individual has an infant?
Any help is appreciated!
Surya
I'm estimating a log-linear model with panel data using xtreg where my model is as follows:
log(y1/y2) = B0 + B1(policy) + B2(infant)+ B3(policy*infant) + B4log(x1) + B5 (x2) + B6(year) + B7(state)
where policy = 0 for control individuals living in states before the policy and = 1 for treated individuals living in states after the policy was introduced (the policy introduction is staggered across time)
infant = 1 only at the year the individual has an infant and = 0 otherwise
x1 is log of wages
x2 are other demographic and economic factors that are not log-transformed
How can I interpret the coefficient on B3 which is the instantaneous effect of the policy only during the year individual has an infant?
Any help is appreciated!
Surya
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