One form of data reduction is cluster analysis which is used to separate detailed data into constituent groups. This paper illustrates a useful application of cluster analysis to the data reduction of detailed discrete responses of a type that are often found in large surveys. This method is...

Regression specifications in applied econometrics frequently employ regressors, which are defined as the product of two other regressors to form an interaction. Unfortunately, the interpretation of the results of these models is not as straight forward as in the linear case. In this article, we...

The traditional textbook approach to avoiding the dummy trap problem is to delete a category from each qualitative variable. This paper illustrates an alternative constraint which can be used to transform conventional dummy variable coefficients. This constraint serves to simplify their...