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?
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?
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