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  • How to compare differences in coeficients from an interaction of two dummy variables?

    My main hypothesis tests the differences between the coefficients of a regression with interaction between two dummy variables.
    Y = i.Dummy1#i.Dummy2
    Which gives the following
    Variable coefficient
    0.Dummy1*0.Dummy2 beta1
    1.Dummy1*0.Dummy2 beta2
    0.Dummy1*1.Dummy2 beta3
    1.Dummy1*1.Dummy2 beta4

    I want to show
    beta4 – beta 2 > beta3 – beta1
    1.Dummy1*1.Dummy2 – 1.Dummy1*0.Dummy2 > 0.Dummy1*1.Dummy2 – 0.Dummy1*0.Dummy2

    Can I simply subtract the coefficients (because these are dummy variables) if the coefficients are significant?

  • #2
    Code:
    regress y i.dummy1##i.dummy2
    margins dummy1#dummy2, post
    lincom 1.dummy1#1.dummy2 - 1.dummy1#0.dummy2 - (0.dummy#1.dummy2 - 0.dummy1#0.dummy2)
    The significance of the coefficients is completely irrelevant to what you want to do here.

    Comment


    • #3
      Thanks.

      Comment

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