Empirical Economics

, Volume 45, Issue 1, pp 583–603

Interaction effects in econometrics

Article

Abstract

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.

Keywords

Non-linear regression Interaction terms 

JEL Classification

C12 C13 

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Copyright information

© Springer-Verlag 2012

Authors and Affiliations

  1. 1.School of Economics and FinanceMassey UniversityPalmerston NorthNew Zealand
  2. 2.Suleyman Sah UniversityIstanbulTurkey
  3. 3.Department of EconomicsUniversity of HoustonHoustonUSA
  4. 4.CEPRLondonUK

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