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Direct linkGiesselmann, Marco; Schmidt-Catran, Alexander W. – Sociological Methods & Research, 2022
An interaction in a fixed effects (FE) regression is usually specified by demeaning the product term. However, algebraic transformations reveal that this strategy does not yield a within-unit estimator. Instead, the standard FE interaction estimator reflects unit-level differences of the interacted variables. This property allows interactions of a…
Descriptors: Regression (Statistics), Monte Carlo Methods, Correlation, Evaluation Methods
