Compression and Conditional Effects: A Product Term Is Essential When Using Logistic Regression to Test for Interaction*

Carlisle Rainey

Political Science Research and Methods, 2016, vol. 4, issue 3, 621-639

Abstract: Previous research in political methodology argues that researchers do not need to include a product term in a logistic regression model to test for interaction if they suspect interaction due to compression alone. I disagree with this claim and offer analytical arguments and simulation evidence that when researchers incorrectly theorize interaction due to compression, models without a product term bias the researcher, sometimes heavily, toward finding interaction. However, simulation studies also show that models with a product term fit a broad range of non-interactive relationships surprisingly well, enabling analysts to remove most of the bias toward finding interaction by simply including a product term.

Date: 2016
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