New paper by Fritz Schiltz, Chiara Masci, Tommaso Agasisti and Daniel HORN in Applied Economics:
Multiplicative interaction terms are widely used in economics to identify heterogeneous effects and to tailor policy recommendations. The execution of these models is often flawed due to specification and interpretation errors. This article introduces regression trees and regression trees ensembles to model and visualize interaction effects. Tree-based methods include interactions by construction and in a nonlinear manner. Visualizing nonlinear interaction effects in a way that can be easily read overcome common interpretation errors. We apply the proposed approach to two different datasets to illustrate its usefulness.
Challenging Science and Innovation Policy Utrecht, 1-3 June 2022, hosted by Copernicus Institute of Sustainable Development, Utrecht University The “European Forum for Studies ... Read More »
Published in ‘Does EU Membership Facilitate Convergence? The Expierience of the EU’s Eastern Enlargement – Volume II’ Edited by Landesmann, Michael, Székely, Istvan P. ... Read More »
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