Frondel, Manuel; Vance, Colin James - In: Applied Economics Letters 19 (2012) 10, pp. 987-992
Interaction effects capture the impact of one explanatory variable <italic>x</italic> <sub>1</sub> on the marginal effect of another explanatory variable <italic>x</italic> <sub>2</sub>. To explore interaction effects, the so-called interaction terms <italic>x</italic> <sub>1</sub> <italic>x</italic> <sub>2</sub> are typically included in estimation specifications. While in linear models the effect of a...