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Testing Hypotheses About Interaction Terms in Nonlinear Models

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  • William H. Greene

Abstract

We examine the interaction effect in nonlinear models discussed by Ai and Norton (2003). Tests about partial effects and interaction terms are not necessarily informative in the context of the model. We suggest ways to examine the effects that do not involve statistical testing.
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Suggested Citation

  • William H. Greene, 2009. "Testing Hypotheses About Interaction Terms in Nonlinear Models," Working Papers 09-08, New York University, Leonard N. Stern School of Business, Department of Economics.
    • Handle: RePEc:ste:nystbu:09-08
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    File URL: http://w4.stern.nyu.edu/economics/docs/workingpapers/2009/Interaction-Terms-in-Nonlinear-Models.pdf
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    References listed on IDEAS

    as
    1. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    2. Andreas Million & Regina T. Riphahn & Achim Wambach, 2003. "Incentive effects in the demand for health care: a bivariate panel count data estimation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(4), pages 387-405.
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