Taking Distributions Seriously: Calculating and Interpreting the Marginal Effects of Constitutive Variables in Interactive Non-linear Models

• In Event: Novel Approaches to Classical Issues in Estimation

Brief Overview

We propose two methods for interactive nonlinear models: calculating and plotting marginal effects for all in-sample values of constitutive variables and "distribution-weighted average marginal effects" that account for their joint distribution.

Authors

• Mert Moral, Sabanci University

• Evgeny Sedashov, National Research University Higher School of Economics

• Andrei Zhirnov, SUNY at Binghamton