This is my first question and I hope I'm posting the question correctly. I need some advice as to how to calculate and graph two interaction effects between two dummies in nonlinear models in Stata.
This is my basic model:
Code:
logit y a b i.c .i.d i.e, cluster(id)
Code:
logit y a b i.c i.d i.e c_d c_e, cluster (id) // created interactions: 1) gen c_d=c*d; 2) gen c_e=c*e
"interaction effects in non-linear models cannot be understood by looking at the coefficients only (see Ai's and Nortons publications)".
Code:
logit y a b i.c i.d i.e c_d c_e, cluster (id) margins, dydx(*) predict (pr) post coefplot, keep(c_d c_e) xline(0)
My question is whether this is a sound way of doing this, statistically speaking and with regard to my Stata code. My interpretation of this article https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3447245/ is that it's ok to use margins (AMEs) for interaction effects. They also suggest "inteff" command but it's not so intuitive to me and the graphs are hard to read. In general, i find interaction between two dummies hard but it's necessarily for my project.
What is your advice here? My aim is to simply see the interaction effect when c=1 & d=1/e=1 and, no less important, to address the concerns of reviewers.
Sincerely,
Ferenc Gulinsky
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