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Interaction effects in econometrics

By Hatice Ozer Balli and Bent E. Sorensen


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

Topics: C13 - Estimation: General, C12 - Hypothesis Testing: General
Year: 2012
DOI identifier: 10.1007/s00181-012-0604-2
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