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  • Need suggestion to improve coefficient values

    I run fixed effect regression my dependent variable in index value 0 to 1 while independent variable are %. Problem is that coefficient values are very low. please suggest how can I improve coefficient values or run alternative method. I attached fixed effect results. Looking for your kind response.
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  • #2
    Originally posted by Abdul Majeed View Post
    . . . my dependent variable in index value 0 to 1 while independent variable are %. Problem is that coefficient values are very low. please suggest how can I improve coefficient values . . .
    Maybe divide your independent variables by 100?

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    • #3
      The size of the coefficient means nothing -- as the reply by Joseph Coveney implies : it depends on the dimensions of your variables. What matters is the size of the coefficient relative to its standard error.
      On edit: if the variables are of very different dimensions this may cause numerical instability in estimation

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