Hello all,

I have a silly question regarding interaction term. Would appreciate prompt input :-)

The research model uses Women ratio (and women dummy) as the main independent variable and leverage as the outcome variable.

I want to see the partical effect of e.g. industry size (large, Medium) and have created the following interaction term

gen size_interaction=WOMENDUMMY*DAX ( DAX is aslo a dummy variable & equal ==1 for large and otherwise)

and here is the model: reg LEVERAGE WOMENDUMMY DAX size_interaction GROWTH i.year i.SIC

I am confused whether i can use the womenratio instead of women dummy in the above model of regression considering the interaction term was generated using dummy. If not how can i generate an interaction term for continuous var (WOMEN ratio) and other dummy variable for interaction ? similarly, can i use women dummy and the continuous variable to generate an interaction term?

I hope I haven't posted a confused query.


Thanks.