I have two independent dummy variables in an OLS regression model, and, according to my hypotheses, I would like to include their interaction term(s) in the model. The variables are: type of regime (democratic/non-democratic) and gender.
I would appreciate any advice on how to construct the interaction term(s) in this case. Should it be one or two interaction terms? Which will be reference group(s)? and how should I interpret the results?
Thank you in advance!
Can you elaborate a little bit more about your hypothesis, cause there are couple of possibiities here.
I agree with Krzysztof - you should explain the full model. Initially it is unclear what your dummies are - which regime and whose gender you want to study on interaction.
Dear Marc,
Thank you for the answer! It definitely helps and goes in line with my expectation.
Just one clarification: if I add more variable into the model, will it change the logic of interpreting the coefficients for variables A, B and their interaction term?
Thank you,
Ekaterina
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