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Interaction effects in econometrics |
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| Authors: | Hatice Ozer Balli Bent E Sørensen |
| Institution: | 1. School of Economics and Finance, Massey University, Palmerston North, New Zealand 2. Suleyman Sah University, Istanbul, Turkey 3. Department of Economics, University of Houston, Houston, TX, USA 4. CEPR, London, UK |
| 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. |
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