Hi,

I run this four-way interaction model in Stata 14:

xtreg Y c.X1##c.X2##c.X3##X4 Controls i.country i.year,r

Then, I want to get the average marginal effects (AMEs) of continuous X1, X2 and X3 when dichotomous X4 equals 0 and 1 respectively. My options are:

(i) margins X4, dydx(X1 X2 X3)

(ii) margins if X4==0, dydx(X1 X2 X3) & margins if X4==1, dydx(X1 X2 X3)

Is there any reason I'd prefer (i) to (ii)?

Since (i) treats all observations as if X4==0 and X4==1 respectively, is (ii) more accurate/preferable to accounting for real X4==0 and X4==1 observations separately one by one?

Best,

Lütfi