Interpreting an index

[Ernest Rhys]

Dear Users,

My dependent variable is the first difference of log GDP per capita (giving the growth rate of GDP per capita). One of my independent variables of interest is an index which was rescaled to 0-1 (hasn't been logged). I am not sure on how to interpret it. If the coefficient on that index is -0.025, does that mean a one unit increase in that index reduces the growth rate of GDP per capita by 0.025 percentage points or by 2.5 percentage points?

Thanks in advance!

[Phil Bromiley]

You'll increase your chances of a useful answer by following the FAQ on asking questions - provide Stata code in code delimiters, readable Stata output (fixed spacing fonts help), and data using dataex.

Since the dv is not in percentages, I'd guess .025 or 2.5%.