Graphical Illustration of Interaction Effects in Binary Choice Models: A Note
用生猪生产者的合同选择数据，演示了二元logit和probit模型中交互效应的图形化方法，发现不确定性与资产专用性的交互作用对合同使用有正向影响，尤其对决策概率接近50%的生产者。
Abstract Graphing procedures for evaluating power or interaction terms in binary logit and probit models are illustrated in an application to hog producers’ decisions based on transaction cost economics’ hypothesised positive effect of the interaction of uncertainty and asset specificity on contract use. Results support the hypothesis, particularly for producers that are otherwise on the cusp (near the 50/50 probability) of choosing either contract or spot transactions based on their responses for other variables. Such insights may not be drawn without use of the demonstrated graphing procedures.