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dc.contributor.authorFrondel, Manuelen_US
dc.contributor.authorVance, Colinen_US
dc.date.accessioned2012-08-27en_US
dc.date.accessioned2012-08-27T12:56:51Z-
dc.date.available2012-08-27T12:56:51Z-
dc.date.issued2012en_US
dc.identifier.isbn978-3-86788-356-6en_US
dc.identifier.pidoi:10.4419/86788356en_US
dc.identifier.urihttp://hdl.handle.net/10419/61430-
dc.description.abstractInteraction effects capture the impact of one explanatory variable x1 on the marginal effect of another explanatory variable x2. To explore interaction effects, socalled interaction terms x1x2 are typically included in estimation specifications. While in linear models the effect of a marginal change in the interaction term is equal to the interaction effect, this equality generally does not hold in non-linear specifi cations (AI, NORTON, 2003). This paper provides for a general derivation of interaction effects in both linear and non-linear models and calculates the formulae of the interaction effects resulting from HECKMAN's sample selection model as well as the Two-Part Model, two regression models commonly applied to data with a large fraction of either missing or zero values in the dependent variable, respectively. Drawing on a survey of automobile use from Germany, we argue that while it is important to test for the significance of interaction effects, their size conveys limited substantive content. More meaningful, and also more easy to grasp, are the conditional marginal effects pertaining to two variables that are assumed to interact.en_US
dc.language.isoengen_US
dc.publisherRWI Essenen_US
dc.relation.ispartofseriesRuhr Economic Papers 309en_US
dc.subject.jelC34en_US
dc.subject.ddc330en_US
dc.subject.keywordTruncated regression modelsen_US
dc.subject.keywordinteraction termsen_US
dc.titleOn interaction effects: The case of heckit and two-part modelsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn722270186en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Publikationen von Forscherinnen und Forschern des RWI
Ruhr Economic Papers, RWI

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