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Marginal and Interaction Effects in Ordered Response Models

Mallick, Debdulal (2008): Marginal and Interaction Effects in Ordered Response Models.

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Abstract

In discrete choice models the marginal effect of a variable of interest that is interacted with another variable differs from the marginal effect of a variable that is not interacted with any variable. The magnitude of the interaction effect is also not equal to the marginal effect of the interaction term. I present consistent estimators of both marginal and interaction effects in ordered response models. This procedure is general and can easily be extended to other discrete choice models.

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