American Journal of Theoretical and Applied Statistics

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Direct and Indirect Effects in Dummy Variable Regression

Received: 3 December 2013    Accepted:     Published: 20 February 2014
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Abstract

This paper proposes and develops the use of the non-cummulative dummy variables of 1’s and 0’s to represent levels of parent independent variables in dummy variable multiple regression models. The regression coefficients obtained using the proposed methods are easier to interprete and clearly understand than the use of the cummulatively coded ordinal dummy variables of 1’s and 0’s that could be used for the same purpose. The proposed method also enables the simultaneous estimation of the total, absolute or overall effect of a parent independent variable as well as its direct effect through its representative dummies and its indirect effect on a given independent variable through the mediation of other parent independent variables in the model was demonstrated. The use of these procedures was illustrated with an example.

DOI 10.11648/j.ajtas.20140302.13
Published in American Journal of Theoretical and Applied Statistics (Volume 3, Issue 2, March 2014)
Page(s) 44-48
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Dummy Variables, Total Effect, Direct Effect, Indirect Effect, Parent Variables, Mediation Model

References
[1] Oyeka I. C. A. and Nwankwo, C. H. (2012): "Use of Ordinal Dummy Variables in Regression Models". IOSR Journal of Mathematics, Vol. 2, Issue 5 (Sep – Oct 2012), pp 10 – 07.
[2] Boyle, R. P. (1970): "Path Analysis and Ordinal Data". American Journal of Sociology, 47, 1970, 461 – 480.
[3] Oyeka I. C. A. (1993): "Estimating Effects in Ordinal Dummy Variable Regression". STATISTICA, anno L.111, n.2 pp 262 – 268.
[4] Neter, J., Wasserman, W. and Kutner, M. H. (1983): "Applied Linear Regression Models". Richard D. Irwin Inc, Illinois.
[5] Wright, S. (1960): "Path Coefficients and Path Regression: Alternative to Complementary Concepts". Biometrics, Volume 16, pp 189 – 202.
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  • APA Style

    Oyeka I. C. A., Nwankwo Chike H. (2014). Direct and Indirect Effects in Dummy Variable Regression. American Journal of Theoretical and Applied Statistics, 3(2), 44-48. https://doi.org/10.11648/j.ajtas.20140302.13

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    ACS Style

    Oyeka I. C. A.; Nwankwo Chike H. Direct and Indirect Effects in Dummy Variable Regression. Am. J. Theor. Appl. Stat. 2014, 3(2), 44-48. doi: 10.11648/j.ajtas.20140302.13

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    AMA Style

    Oyeka I. C. A., Nwankwo Chike H. Direct and Indirect Effects in Dummy Variable Regression. Am J Theor Appl Stat. 2014;3(2):44-48. doi: 10.11648/j.ajtas.20140302.13

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  • @article{10.11648/j.ajtas.20140302.13,
      author = {Oyeka I. C. A. and Nwankwo Chike H.},
      title = {Direct and Indirect Effects in Dummy Variable Regression},
      journal = {American Journal of Theoretical and Applied Statistics},
      volume = {3},
      number = {2},
      pages = {44-48},
      doi = {10.11648/j.ajtas.20140302.13},
      url = {https://doi.org/10.11648/j.ajtas.20140302.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20140302.13},
      abstract = {This paper proposes and develops the use of the non-cummulative dummy variables of 1’s and 0’s to represent levels of parent independent variables in dummy variable multiple regression models. The regression coefficients obtained using the proposed methods are easier to interprete and clearly understand than the use of the cummulatively coded ordinal dummy variables of 1’s and 0’s that could be used for the same purpose. The proposed method also enables the simultaneous estimation of the total, absolute or overall effect of a parent independent variable as well as its direct effect through its representative dummies and its indirect effect on a given independent variable through the mediation of other parent independent variables in the model was demonstrated. The use of these procedures was illustrated with an example.},
     year = {2014}
    }
    

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    AB  - This paper proposes and develops the use of the non-cummulative dummy variables of 1’s and 0’s to represent levels of parent independent variables in dummy variable multiple regression models. The regression coefficients obtained using the proposed methods are easier to interprete and clearly understand than the use of the cummulatively coded ordinal dummy variables of 1’s and 0’s that could be used for the same purpose. The proposed method also enables the simultaneous estimation of the total, absolute or overall effect of a parent independent variable as well as its direct effect through its representative dummies and its indirect effect on a given independent variable through the mediation of other parent independent variables in the model was demonstrated. The use of these procedures was illustrated with an example.
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Author Information
  • Department of Statistics, Nnamdi Azikiwe University, Awka, Nigeria

  • Department of Statistics, Nnamdi Azikiwe University, Awka, Nigeria

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