Understanding Interaction Models: Improving Empirical Analyses
Abstract
Multiplicative interaction models are common in the quantitative political science literature. This is so for good reason. Institutional arguments frequently imply that the relationship between political inputs and outcomes varies depending on the institutional context. Models of strategic interaction typically produce conditional hypotheses as well. Although conditional hypotheses are ubiquitous in political science and multiplicative interaction models have been found to capture their intuition quite well, a survey of the top three political science journals from 1998 to 2002 suggests that the execution of these models is often flawed and inferential errors are common. We believe that considerable progress in our understanding of the political world can occur if scholars follow the simple checklist of dos and don'ts for using multiplicative interaction models presented in this article. Only 10% of the articles in our survey followed the checklist.
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The marginal effects of the interaction term show the true impact of a unit change in financial development on economic growth better than the coefficient of the interaction term.
“This is because the marginal effects of the interaction term clearly show the true impact of a unit change in the financial development on economic growth than the coefficient of the interaction term.”
From The impact of financial development on economic growth in sub-Saharan Africa. Does institutional quality matter? (2023) · cites this paper as Brambor, Clark, and Golder (2006)
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Bergman, U. M., Hutchison, M. M., & Jensen, S. E. H. (2016) · European Journal of Political Economy · doi:10.1016/j.ejpoleco.2016.04.005 · Cited by 186 · see citing works
Lin, W. L., Yip, N. K. T., Ho, J. A., & Sambasivan, M. (2020) · Industrial Marketing Management · doi:10.1016/j.indmarman.2019.12.009 · Cited by 181 · see citing works
Investor Perceptions of Financial Misconduct: The Heterogeneous Contamination of Bystander Firms
Paruchuri, S., & Misangyi, V. F. (2015) · doi:10.5465/amj.2012.0704 · Cited by 160
Blais, A., & Achen, C. (2019) · Political Behavior · doi:10.1007/s11109-018-9459-3 · Cited by 159 · see citing works
Financial development and environmental quality in sub-Saharan Africa: Is there a technology effect?
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Women’s Representation, Accountability and Corruption in Democracies
Esarey, J., & Schwindt-Bayer, L. A. (2017) · British Journal of Political Science · doi:10.1017/s0007123416000478 · Cited by 156 · see citing works
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“…coefficients for the interaction terms, we calculated the marginal effects and standard errors across a substantively meaningful range of the moderating variable while the other variables were constrained at their means to bring meaningful and informative marginal effects (Brambor et al., 2005).”
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“Therefore, the coefficients of the dummy variables for CUs and TUs in Table 5 cannot be interpreted as an effect at the mean value (for details, see Brambor et al. 2006).”
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“After the interaction terms are added to the regressionmodel, it is not appropriate to interpret the results by simply combining the effect of each variable with the effect of the interaction variable (Brambor et al. 2006).”
Method
- Authors
- Brambor, T., Clark, W. R., & Golder, M.
- Affiliations
- New York University (US)
- University of Michigan (US)
- Florida State University (US)
- Corresponding author
- Golder, Matt
- Venue
- Political Analysis
- Publisher
- Cambridge University Press (CUP)
- Published
- 2006
- Volume
- 14
- Issue
- 1
- Pages
- 63-82
- ISSN
- 1047-1987 (ISSN-L)
- 1476-4989
- OpenAlex
- W2099304543
- Cited by
- 6,223
- References
- 33
- Citations by year
- 2026: 372 · 2025: 293 · 2024: 299 · 2023: 377 · 2022: 334 · 2021: 308 · 2020: 395 · 2019: 435 · 2018: 389 · 2017: 333 · 2016: 333 · 2015: 346 · 2014: 347 · 2013: 363 · 2012: 308
- FWCI
- 556.72
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Political Analysis (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Political Science and International Relations › Political Science Research and Education
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Spatial and Panel Data Analysis
- Social Sciences › Political Science and International Relations › Electoral Systems and Political Participation
- Keywords
- multiplicative interaction model, strategic interaction, institutional environment, inferential errors
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