I have an interaction term in my level-1 equation, preceded by the two IVs that make up the interaction term. I am hypothesizing that a level-2 variable will moderate the slope between the interaction term and my DV.
My Question are:
- Even though I'm not predicting that the level-2 variable will influence anything other than the slope between the interaction term and my DV, is it proper model specification to include the level-2 variable in all the level-2 equations (predicting the intercept, the slope of IV1 and the DV, and the slope of the IV2 and DV)?
- Can I simply include the level-2 variable in only the level-2 equation for the interaction and DV slope?
Also, I do have a significant portion of variance in the slopes for all of the IV-DV relationships.Any suggestions would be greatly appreciated!


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