My base model setup looks promising: My interaction terms are stat. sig. (as a first indication). Thus I check the marginal effect of my main regressor which is also significant. I further check this ME at representative values of my categorical variable (this is stat. sig.) and finally the difference of these AME of continous at representative of the categorical variable.
Code:
******************************************************************************* *** life satisfaction panel data * https://www.diw.de/documents/dokumentenarchiv/17/diw_01.c.412698.de/soep_lebensz_en.zip use soep_lebensz_en.dta xtset id year ******************************************************************************* ******************************************************************************* // BASE INTERACTION MODEL * run FE regression with interaction of continuous and "categorical" variable set more off xtreg satisf_org c.education##c.education##no_kids, fe * average marginal effect of education is stat. sig. margins, dydx(education) * AME of education at representative values stat. sig. margins, dydx(education) at(no_kids = (0 1 2 3)) post * difference of AME is not significant (in this example) but for my data lincom _b[1bn._at] - _b[2._at] *******************************************************************************
Baetschmann, G., Ballantyne, A., Staub, K. E., & Winkelmann, R. (2020). feologit: A new command for fitting fixed-effects ordered logit models. The Stata Journal, 20(2), 253-275.
Code:
******************************************************************************* // ROBUSTNESS CHECK: fixed effects ordered logit with "blow up cluster" (BUC) feologit satisf_org c.education##c.education##no_kids, group(id) * I don't know exactly what this means. logitmarg, dydx(education) * I can also calculate this (but it's subject to special assumptions). margins, dydx(education) margins, dydx(education) at(no_kids = (0 1 2 3)) post lincom _b[1bn._at] - _b[2._at] *******************************************************************************
What can you recommend for conducting the robustness check and proceeding? Kind regards
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