# Interpretation of two indexes Interaction Term

Respected Fellows. I will thankful if someone help me to explain my model results.my model is as follows. Yit=αPFit+βPSit+δ (PF*PS) it+εit Where Y is GDP per capita PF=Political Freedom Index ranges from (0-10) PS is political stability Index ranges from (0-10) PF*PS=interaction term I=country and t represent time period. I know how to interpret the results of two continuous variables but I am confused how to interpret the results of two indexes interaction term.(for purpose of easiness i exclude other control variables here)

My estimated model results as follows. Y= -0.009+0.009PF+0.015PS-0.001(PF*PS) Regard

Second: Interpretation of interactions has been discussed many times here. You can search the interaction tag: and see if your question is already answered there.