We have used a three-dimensional elastic finite element model to examine the effects of topography on the surface deformation predicted by models of magma chamber deflation. We used the topography of Mt. Etna to control the geometry of our model, and compared the finite element results to those predicted by an analytical solution for a pressurized sphere in an elastic half-space. Topography has a significant effect on the predicted surface deformation for both displacement profiles and synthetic interferograms. Not only are the predicted displacement magnitudes significantly different, but also the map-view patterns of displacement. It is possible to match the predicted displacement magnitudes fairly well by adjusting the elevation of a reference surface; however, the horizontal pattern of deformation is still significantly different. Thus, inversions based on constant-elevation reference surfaces may not properly estimate the horizontal position of a magma chamber. We have investigated an approach where the elevation of the reference surface varies for each computation point, corresponding to topography. For vertical displacements and tilts this method provides a good fit to the finite element results, and thus may form the basis for an inversion scheme. For radial displacements, a constant reference elevation provides a better fit to the numerical results. ¿ 1998 American Geophysical Union