<p>Without additional information, it is hard to answer your question but I would say that a moderation model is like any econometric model (and in fact, it is an econometric model). </p>

<p>Therefore, I would tend to agree with @Student, adding control variables is a good idea but it must represent your theoretical considerations (is there an omitted variable bias, a confounding variable, etc ?). So you should only add relevant variables to your model in order to increase its precision. </p>

<p>Just adding random/useless variables will unnecessarily increase the complexity of your model; and as my econometrics professor used to say: "<em>why use a bazooka to kill a fly when you can use a fly swatter ?</em>"</p>

<p>Edit: I (scholar) googled "moderation effect economics" and I randomly chose a <a href="https://journals.sagepub.com/doi/pdf/10.1177/0047287513496472?casa_token=1cvrTTZLFzYAAAAA%3AhBnCoJJZsSAs-yXoMJCHhRh0EJ5sSO_vMn9FRt9fzt_jaisLlR9tuR7vpJB2yq62vzQIJmpjnhM&amp;" rel="nofollow noreferrer">paper</a> published in a good journal, you can see that they also use relevant control variables (p. 512).</p>

CC BY-SA 4.0
2019-11-18T15:20:39.183Z
Thanks a lot! I added relevant control variables to my regressions. For some regressions, the moderator variable "is not significant" but the interaction term is significant..Should we say that there is a moderation effect?
Elkwather
CC BY-SA 4.0
2019-11-15T12:10:52.563Z
2019-11-16T08:57:53.760Z
2019-11-16T08:57:53.760Z
Nicolas L
<p>Should we include some control variables in regressions when we test a moderation effect of a variable?</p>

CC BY-SA 4.0
2019-11-15T04:42:26.663Z
In general, control variables are a good idea. Please give an example of the specific regression you would like to know about.
Student
CC BY-SA 4.0
2019-11-18T15:22:12.023Z
Thanks a lot! when I added relevant control variables to my regressions, the moderator variable "become not significant" but the interaction term remain significant..Should we say that there is a moderation effect?..Without control variables, both were significant..
Elkwather
<banking><regression>
Moderation effect of a variable
Elkwather
# Moderation effect of a variable

(Asked by: username_0 on 2019-11-14)

Should we include some control variables in regressions when we test a moderation effect of a variable?

**Tags:** banking, regression

> **Comments:**
> **username_1**: In general, control variables are a good idea. Please give an example of the specific regression you would like to know about.  
> **username_0**: Thanks a lot! when I added relevant control variables to my regressions, the moderator variable "become not significant" but the interaction term remain significant..Should we say that there is a moderation effect?..Without control variables, both were significant..  

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## 1 answers

### Answer by username_2 on 2019-11-15. Score: 1

Without additional information, it is hard to answer your question but I would say that a moderation model is like any econometric model (and in fact, it is an econometric model).

Therefore, I would tend to agree with @username_1, adding control variables is a good idea but it must represent your theoretical considerations (is there an omitted variable bias, a confounding variable, etc ?). So you should only add relevant variables to your model in order to increase its precision.

Just adding random/useless variables will unnecessarily increase the complexity of your model; and as my econometrics professor used to say: "*why use a bazooka to kill a fly when you can use a fly swatter ?*"

Edit: I (scholar) googled "moderation effect economics" and I randomly chose a [paper](https://journals.sagepub.com/doi/pdf/10.1177/0047287513496472?casa_token=1cvrTTZLFzYAAAAA%3AhBnCoJJZsSAs-yXoMJCHhRh0EJ5sSO_vMn9FRt9fzt_jaisLlR9tuR7vpJB2yq62vzQIJmpjnhM&) published in a good journal, you can see that they also use relevant control variables (p. 512).

> **Comments:**
> **username_0**: Thanks a lot! I added relevant control variables to my regressions. For some regressions, the moderator variable "is not significant" but the interaction term is significant..Should we say that there is a moderation effect?  

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