Marginal changes in random parameters ordered response models with interaction terms (Journal article)

Drichoutis, A. C./ Nayga, R. M.

Marginal changes of interacted variables and interaction terms in random parameters ordered response models are calculated incorrectly in econometric softwares. We derive the correct formulas for calculating these marginal changes. In our empirical example, we observe significant changes not only in the magnitude of the marginal effects but also in their standard errors, suggesting that the incorrect estimation of the marginal effects of these variables as is commonly practiced can render biased inferences on the findings.
Institution and School/Department of submitter: Πανεπιστήμιο Ιωαννίνων. Σχολή Οικονομικών και Κοινωνικών Επιστημών. Τμήμα Οικονομικών Επιστημών
Keywords: discrete changes,interaction term,marginal effects,ordered models
ISSN: 0747-4938
Link: <Go to ISI>://000289842200004
Appears in Collections:Άρθρα σε επιστημονικά περιοδικά ( Ανοικτά)

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