I am interested in the relationship between two fractions. I have a cross-section data set with a fraction of the population with a diagnosis and a fraction of the population with symptom levels above a certain threshold.
As the outcome is a fraction and there are some 0 and 1 observations, the fractional response model -fracreg- seems suitable. I have followed the approach outlined on Stata's site for fractional response models.
My approach is
I obtain this elasticity:
I want to interpret this as the percent change in a with a 1 % increase in b. (I assume we obtain the relative percent - not the absolute percent point - increase in a.).
What confuses me on the Stata "walkthrough" linked to above is that they write this after the elasticities are obtained:
When interpreting the elasticity, I wonder if I either interpret it as:
As the outcome is a fraction and there are some 0 and 1 observations, the fractional response model -fracreg- seems suitable. I have followed the approach outlined on Stata's site for fractional response models.
My approach is
Code:
fracreg probit a b margins, dyex(_all)
I want to interpret this as the percent change in a with a 1 % increase in b. (I assume we obtain the relative percent - not the absolute percent point - increase in a.).
What confuses me on the Stata "walkthrough" linked to above is that they write this after the elasticities are obtained:
A truly careful reader will have noticed that we typed dyex(), not eyex(). The dependent variable is already a proportion and so is already on a percentage scale. We just need its change, not its percentage change.
- When b increase 1 %, a increases by .0022 percent?
- Or do I need to multiply .0021 by 100 to interpret this as: When b increase 1 %, a increases by .22 percent?
Comment