Hello,

I am getting different results when I use interaction terms with xtreg compared multiplying two continuous variables manually.

When I use the variables that I generated by multiplying two variables, I get:

Array

where TotalCLagIER = IER * l.TotalC, TotalCLagNPLR = NPLR * l.TotalC and TotalCLagNIER = NIER * l.TotalC.

If I use interaction terms I get the following results:

Array

Why are the results so different?