Hi all,
I know there have been many previous posts about interpreting coefficients of difference in differences, but I am still not sure about my interpretation.
My dependent variable "performance" is calculated as operating income divided by lagged total assets. It's a proportion, it ranges between 0 and 1.
My treatment variable is the tax amount divided by total revenue of the firm. This is also a proportion, it ranges between 0 and 1.
The variable "post" is a dummy variable with the value 0 for the period without the tax and the value 1 for the period with the tax.
The coefficient of the treatment variable on the dependent variable is -0.111. How do I interpret this variable?
The coefficient of the interaction variable of the treatment variable and the "post" variable, so treatment*post, is 0.140.
Does this imply that a 1 percentage point increase in the interaction variable, increases the dependent variable "performance" with 0.14 percentage point?
Thanks in advance!
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