Hi guys,
I am currently working on master thesis I have encountered an issue.
Basically my dependent variable is binary and thus far I just have used the xtreg random effects for the regression however my supervisor told me that a logit model would be preferred when the outcome variable is binary. Since I am testing for an interaction effect between two continuous variables I have thus far used the command
*margins, dydx(X) at(Z = (1 2 4))*
to see how the slope changes for different values of Z. However, I have heard that testing interaction effects in logit model is somewhat more difficult. Can I also use this command for the logit model or do I have to use another command? I also heard about using odd ratios, but this was at bit confusing for me.
I appreciate all answers and thanks in advance,
Marco
I am currently working on master thesis I have encountered an issue.
Basically my dependent variable is binary and thus far I just have used the xtreg random effects for the regression however my supervisor told me that a logit model would be preferred when the outcome variable is binary. Since I am testing for an interaction effect between two continuous variables I have thus far used the command
*margins, dydx(X) at(Z = (1 2 4))*
to see how the slope changes for different values of Z. However, I have heard that testing interaction effects in logit model is somewhat more difficult. Can I also use this command for the logit model or do I have to use another command? I also heard about using odd ratios, but this was at bit confusing for me.
I appreciate all answers and thanks in advance,
Marco
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