Hello everyone, I hope you all are having a wonderful week (and weekend)!
I have a quick question regarding the interpretation of an interaction effect, and I want to make sure I'm interpreting the effect correctly. See the following output of an 'xtreg' Fixed-Effect regression.
I'm ultimately trying to determine the treatment effect. I have 2 years of data (2017 and 2018) and two different treatments in addition to a control group.
- The "Factor_Arm" variable is set to a 1 (Control), 2 (Treatment 1), or 3 (Treatment 2)
I'm getting turned around a bit. My primary variables of interest are the coefficients on the interaction terms at the bottom, but I'm wondering if this is actually the treatment effect.
I'm getting turned around trying to interpret this. I know that with the interaction, what I'm seeing is in Factor_Arm#Year is how the coefficient on i.Year will change in 2018 for each of the treated groups.
So in that instance, what I have below is indeed the treatment effect.
But then what is the p-value comparing? Is this saying (as I think) that even after we control for how the control group changed in 2018, the change in Treated Group 1 is statistically different from 0 (p = 0.05), ie, the "Treatment Effect" is statistically different from zero?
Any/all help greatly appreciated. Thank you!
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