Empirical Economics

, Volume 45, Issue 1, pp 583-603

First online:

Interaction effects in econometrics

  • Hatice Ozer BalliAffiliated withSchool of Economics and Finance, Massey UniversitySuleyman Sah University Email author 
  • , Bent E. SørensenAffiliated withDepartment of Economics, University of HoustonCEPR

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We provide practical advice for applied economists regarding robust specification and interpretation of linear regression models with interaction terms. We replicate a number of prominently published results using interaction effects and examine if they are robust to reasonable specification permutations.


Non-linear regression Interaction terms

JEL Classification

C12 C13