Empirical Economics

, Volume 45, Issue 1, pp 583–603

Interaction effects in econometrics


    • School of Economics and FinanceMassey University
    • Suleyman Sah University
  • Bent E. Sørensen
    • Department of EconomicsUniversity of Houston
    • CEPR

DOI: 10.1007/s00181-012-0604-2

Cite this article as:
Balli, H.O. & Sørensen, B.E. Empir Econ (2013) 45: 583. doi:10.1007/s00181-012-0604-2


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

Copyright information

© Springer-Verlag 2012