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  • Threshold for interaction variables

    Dear Stata users,

    I have a field experiment on the impact of nudges on the use of polluting vehicles among a population of individuals. I have a control group and a Placebo group. I want to estimate if the nudge works (I use Linear Probability Model) but also to estimate threshold above which in terms of distance the effect disappears.

    So I run the following estimation:

    reghdfe Polluting_vehic treated_AM##period1##c.ldist , absorb(Id_user id_site time2) cluster(Id_user)

    Id_user are individuals, id_site the firm and time2 the time (day week). Period1 is the variable capturing the treatment period.

    I have the following result:

    HDFE Linear regression Number of obs = 30,479
    Absorbing 3 HDFE groups F( 3, 122) = 3.31
    Statistics robust to heteroskedasticity Prob > F = 0.0223
    R-squared = 0.8110
    Adj R-squared = 0.8077
    Within R-sq. = 0.0015
    Number of clusters (Id_user) = 123 Root MSE = 0.2130

    (Std. Err. adjusted for 123 clusters in Id_user)
    --------------------------------------------------------------------------------------------
    | Robust
    Polluting_vehic | Coef. Std. Err. t P>|t| [95% Conf. Interval]
    ---------------------------+----------------------------------------------------------------
    1.treated_AM | 0 (omitted)
    1.period1 | 0 (omitted)
    |
    treated_AM#period1 |
    1 1 | -.0709034 .0242027 -2.93 0.004 -.118815 -.0229917
    |
    ldist | 0 (omitted)
    |
    treated_AM#c.ldist |
    1 | 0 (omitted)
    |
    period1#c.ldist |
    1 | .0004862 .0009643 0.50 0.615 -.0014228 .0023951
    |
    treated_AM#period1#c.ldist |
    1 1 | .0150103 .0058533 2.56 0.012 .0034231 .0265975
    |
    _cons | .6267646 .0030639 204.57 0.000 .6206993 .6328298
    --------------------------------------------------------------------------------------------

    Absorbed degrees of freedom:
    -----------------------------------------------------+
    Absorbed FE | Categories - Redundant = Num. Coefs |
    -------------+---------------------------------------|
    Id_user | 123 123 0 *|
    id_site | 27 0 27 |
    time2 | 378 1 377 |
    -----------------------------------------------------+
    * = FE nested within cluster; treated as redundant for DoF computation

    .

    How can I compute the Threshold regarding the distance variable?

    Thank you for your help.
    Last edited by Raphael Chiappini; 02 Jun 2022, 07:48.
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