Marginal effect with a dummy
Problem
Consider the model
\[y_i=β_1+β_2x_i+β_3x_i^2+γd_ix_i+ε_i\]
Find the marginal effect of \(x\) for individuals coded as \(d_i=1\) .
Solution
Answer: \(β_2+2β_3x_i+γ\)
Problem
Consider the model
\[y_i=β_1+β_2x_i+β_3x_i^2+γd_ix_i+ε_i\]
Find the marginal effect of \(x\) for individuals coded as \(d_i=1\) .
Solution
Answer: \(β_2+2β_3x_i+γ\)