Hi!
I have an interaction effect between a dummy variable (0/1) and a continous variable in a fixed effects model. I included the interaction term and the main effect (I simply included the continuous variable) in the model. I also include the dummy variable, however the fixed effects model ommits it as it is time-invariant.
1) How do I interpret the coefficient of the interactino effect and the main effect?
2) I already know that the interaction effect shows what happens to the DV for every increase in IV for dummy=0, but how do I interpret with dummy=1?
Thanks!
Theresa
I have an interaction effect between a dummy variable (0/1) and a continous variable in a fixed effects model. I included the interaction term and the main effect (I simply included the continuous variable) in the model. I also include the dummy variable, however the fixed effects model ommits it as it is time-invariant.
1) How do I interpret the coefficient of the interactino effect and the main effect?
2) I already know that the interaction effect shows what happens to the DV for every increase in IV for dummy=0, but how do I interpret with dummy=1?
Thanks!
Theresa
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