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  • #16
    Ruby:
    1) why you were advised to _test- the linear combination of B1+B3=0 I cannot say (unless is one of your research goals).
    2) their linear combination is not statistical signigficant. That's all.
    Kind regards,
    Carlo
    (Stata 19.0)

    Comment


    • #17
      Ruby:
      Handling the issue from another side, -test- ing B1+B3=0, is like -test-ing B1=-B3.
      Considering the following toy-example:
      Code:
      use "https://www.stata-press.com/data/r16/nlswork.dta"
      .  areg ln_wage i.south##i.not_smsa, vce(cluster idcode) abs(idcode)
      
      Linear regression, absorbing indicators         Number of obs     =     28,526
      Absorbed variable: idcode                       No. of categories =      4,711
                                                      F(   3,   4710)   =      12.06
                                                      Prob > F          =     0.0000
                                                      R-squared         =     0.6270
                                                      Adj R-squared     =     0.5532
                                                      Root MSE          =     0.3196
      
                                     (Std. Err. adjusted for 4,711 clusters in idcode)
      --------------------------------------------------------------------------------
                     |               Robust
             ln_wage |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
      ---------------+----------------------------------------------------------------
             1.south |   -.070137   .0235179    -2.98   0.003    -.1162432   -.0240309
          1.not_smsa |  -.1188317   .0239774    -4.96   0.000    -.1658386   -.0718248
                     |
      south#not_smsa |
                1 1  |   .0691241   .0334817     2.06   0.039     .0034843    .1347639
                     |
               _cons |    1.72652   .0102768   168.00   0.000     1.706373    1.746668
      --------------------------------------------------------------------------------
      
      . test 1.south + 1.south#1.not_smsa=0
      
       ( 1)  1.south + 1.south#1.not_smsa = 0
      
             F(  1,  4710) =    0.00
                  Prob > F =    0.9753
      
      . test 1.south =-(1.south#1.not_smsa)
      
       ( 1)  1.south + 1.south#1.not_smsa = 0
      
             F(  1,  4710) =    0.00
                  Prob > F =    0.9753
      
      .
      As, regardless their signs, the magnitude of the two coefficients is similar, no wonder that you cannot reject the null that their linear combination =0.
      Kind regards,
      Carlo
      (Stata 19.0)

      Comment

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