How to interpret Positive and Negative Interactive Terms?

[Olalere Oluwaseyi]

xtscc FV FI CR LD CIR MR CAR DV ROA SIZE GDP HHI CR*FI LD*FI CIR*FI MR*FI CAR*FI , fe

 
Regression with Driscoll-Kraay standard errors   Number of obs     =       144

Method: Fixed-effects regression                 Number of groups  =        16

Group variable (i): Bank                         F( 16,     8)     =     99.67

maximum lag: 2                                   Prob > F          =    0.0000

                                                 within R-squared  =    0.5567











------------------------------------------------------------------------------

             |             Drisc/Kraay





          FV |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]

-------------+----------------------------------------------------------------

          FI |  -.1148121   .0363059    -3.16   0.013    -.1985338   -.0310905

          CR |   .0055413   .0007999     6.93   0.000     .0036968    .0073858

          LD |   .0323363   .0295622     1.09   0.306    -.0358342    .1005068

         CIR |  -.0260728   .0058068    -4.49   0.002    -.0394634   -.0126822

          MR |  -.0098991   .0030664    -3.23   0.012    -.0169703    -.002828

         CAR |   .0531334   .0187731     2.83   0.022     .0098427    .0964242

          DV |  -.0958489   .0636836    -1.51   0.171    -.2427036    .0510059

         ROA |   .5144892   .1296777     3.97   0.004     .2154518    .8135265

        SIZE |   .3985187   .0309687    12.87   0.000     .3271047    .4699327

         GDP |   .1367297   .0414416     3.30   0.011     .0411651    .2322943

         HHI |   -.011108   .0008845   -12.56   0.000    -.0131477   -.0090684

       CR*FI |  -.0128649   .0032846    -3.92   0.004    -.0204392   -.0052905

       LD*FI |   .0501549   .0101218     4.96   0.001      .026814    .0734957

      CIR*FI |   .1057941   .0467597     2.26   0.054    -.0020339    .2136222

       MR*FI |  -.0002442   .0000832    -2.93   0.019    -.0004362   -.0000523

      CAR*FI |  -.1477602    .040427    -3.65   0.006     -.240985   -.0545354

       _cons |   .4190222   .0466151     8.99   0.000     .3115275     .526517

------------------------------------------------------------------------------

Hello everyone,

I have the following interactive term in the model CR*FI, LD*FI, CIR*FI, MR*FI, CAR*FI and I'd like to know how to interpret significantly positive and negative interactive term effect on the dep_var in the model.

Many thanks.

Regards,

Oluwaseyi

[Richard Williams]

Is that really the code you typed? That is an unusual syntax.

i assume interaction effects are interpreted the same way here as they are anywhere else. As FI increases, the effect of the variable it is interacted with increases/ decreases depending on the sign of the interaction term.

[Richard Williams]

If you want some general discussions of interaction effects, you might look at

https://www3.nd.edu/~rwilliam/stats2/l51.pdf

https://www3.nd.edu/~rwilliam/stats2/l53.pdf

https://www3.nd.edu/~rwilliam/stats2/l55.pdf