The
better term (less derogatory sounding) is indicator variable. And yes, it is
perfectly okay to have interactions of indicator variables with either other
indicators or other continuous variables. The only issue, of course, is whether
time is a within subjects variable reflecting two observations of the same
subjects, or a between subjects variable, where subjects may be sampled
independently at each time point.
Paul R. Swank, Ph.D.
Professor, Developmental
Pediatrics
Medical School
UT Health Science Center at
Houston
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Anupama Ramachandran
Sent: Thursday, March 25, 2004 12:22 AM
To: [EMAIL PROTECTED]
Subject: [edstat] Time as a dummy variableHiI have a utility model in which time is treated as a dummy variable with values 0 and 1. In the utility model, time will interact with at least two other terms. If I specify time to be a dummy variable are interactions allowed with dummy variables? What are the specifics I should follow while doing this? Are their any papers which dela with the treatment of time as a dummy variable?I'd really appreciate any help or suggestions in the same.ThanksAnupamaAnupama RamachandranPh.D StudentDept. of marketingR.H. Smith School of BusinessUniversity of Maryland, College Park
