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A question about GDP interacted with Quarter Fixed Effects
A question about GDP interacted with Quarter Fixed Effects

Hi!

What could be the idea behind interact GDP with Quarter Fixed Effects in a Difference in Difference model (GDPfor2014_i *QuarterFE_t)?
I understand that treatment could somehow effect GDP if it was not interacted but is there any more explanation to why it is a good idea to interact GDP with Quarter Fixed Effects?

Total passengers aviation = B₀ + B₁Sweden_i+ B₂After2018Q2_it + B₃(Sweden_i*After2018Q2_it) + B₄QuarterFE_t+ B₅CountryFE_i+ B₆(GDPfor2014_i *QuarterFE_t)+u_it

Total passengers aviation: Total passengers that travel with aviation
Treatmeant group = Sweden
Treatment = A tax was implented at 2018 in the secound quarter

Regards
David

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