Hi,
I had a question about interpreting coefficients on Stata. I have a continuous variable, call it x, which has values ranging from -2 to 2. I have also created a dummy variable which equals one when x < - 1, and a separate dummy variable which equals one when x > 1. If I run an OLS of my dependent variable on x and the two dummy variables, how would I interpret the coefficient on x? I.e., would it be capturing the effect of - 1 <= x <= 1 (the values not already captured by the dummies) or is it still capturing the effect of x as a whole (i.e., the values between -2 and 2)?
I hope my explanation isn't too confusing.
Best,
Amy
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