Hi, I have a balanced panel data set for t=2. I want to estimate a fixed effects model in the following way: Y= β(0) + β(1)*x + β(2)*z + β(3)*(x*z) + μ + ε I don't know how to include an interaction term in the PROC PANEL procedure. Hence, I thought about manually calculating a variable w=x*y and including it in the model. However, considering that a fixed effects model uses deviations of the individual specific means for each variable, this seems to be wrong. Does anybody know how this has to be done? Any help would be greatly appreciated!
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