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  • log dependent variable and % independent variable

    Hello Statalisters,

    I probably have an easy to answer question. However, I couldn't find the answer online, it is a question regarding interpreting results in following situation.
    1. dependent variable is log
    2. independent variable is in % (in my dataset 1% = 0.01, 10%=0.10 etc)

    When the independent variable b1 is positive and significant; for example: 2.034***
    What is then the effect on the dependent variable (in percentage) if there is a 1 percent increase in the independent variable b1.

    Thank you very much! Really appreciate your help
    Best Dominique

  • #2
    Dominique, if your independent variable ranges from 0 to 1, b1 means one percentage point increase in x is on average associated with 2.034 percent increase in y.

    Comment


    • #3
      Dominique:
      to increase precision, the following calculation is recommended, especially when percentage coefficients are higher:
      Code:
      di exp(2.034-1)
      Kind regards,
      Carlo
      (Stata 19.0)

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