i have a regression model, wherein i have to introduce interaction terms (between two independent variabels).
How to do it in eviews.
for example, I have independent variabels X1 and X2,
is it right to specify interaction term as X1*X2 in the model specification box
thanks in advance
Dear Potharla,
The answer is yes and plse look at page 50 in the attached document.
yes you're right. or you can create a new variable like this. Write this command series new_variable_name=x1*x2
Kind regards
Thushara
I have been working with an interaction model with data panel as you asked... The only thing is that literature in political science requires that all constitutive terms have to be in tyour model... so: if you have dependent Y and Independent X and Z interacting your model should be Y = B0 +B1 X + B2 Z + B3 XZ + Bc CONTROLS + u... I created my interaction term as you said and I had no problem... My problem is that now I need to graph the marginal effects and I do not know how to do it in E-Views10.0,... I tried in Stata 15.1 but I re-discovered why I prefer Eviews... If some one knows how to plot marginal effects in EViews I will appreciate...
You can do this by multiplying two variables together. for instance, "X" and "Y".
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