Very nice explanation, Chuck Huber! We have a question we would appreciate one of the bloggers or you can help us with. We are running xtmepoisson with a random effect between a 1st level and a 2nd level variable. We understand the marginal effect of the 1st level variable is the sum of the coefficient of this variable
and the interaction. But the interaction for nonlinear models is the cross
derivative of the dependent variable with respect to the 1st and the 2nd level
variables (See Norton, Wang and Ai (2004) Computing interaction effects and
standard errors in logit and probit models (Stata Journal).
How can we calculate the marginal effect of the 1st level variable, taking into
account the interaction effect?
Thanks in advance!