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  • test and testparm for interaction terms

    reg y x1 x2 x1#x2

    If the coefficient of x1 is significant, the coefficient of x2 is not significant, and the coefficient of x1#x2 is significant. How can I say that there is a joint effect of x1 and x2 on y?

    Should I use the following code 1:
    test x1=x2= x1#x2=0

    or the code 2:
    testparm x1#x2

    or the code 3:
    testparm x1 x2 x1#x2

    What are the differences among those three codes?
    Thanks a lot!
    Last edited by Eve Wang; 10 Jul 2023, 21:05.

  • #2
    Duplicate post. Asked and answered at https://www.statalist.org/forums/for...eraction-terms.

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