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Are there any rules about multiplying dummy variables in a regression?

For example can I say: y = D1D2x1 + x2 + x3

Would I be able to state D1*D2 as I want both criteria to be met before x1 is included?

Would the correct notation then be as follows? D = [1, 1], D has occurred at time t [0, 0], otherwise

MLux
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1 Answers1

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Yes you can do that as long as the resulting product is not always 1 or 0 (e.g. multiplying male and female dummy). There is no special rule about what you propose other than the regular caveats that apply to regression with dummies.

1muflon1
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