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  • Marginal effects of log transformed variable

    Hi everyone,
    I have some issues.
    I ran logistic regression with some independent variables in log-transformed (ln one-plus).
    I ran marginal effects with the following command:
    margins, dydx(*)
    My question is: How Can I interpret the margins for log variables?
    For example, if margins for ln(bank size) is 0.034: one-unit increase in ln bank size increases the probability of bank failure by 3.4%, Is it right?


  • #2
    if both Y and X are ln, then it's an elasticity. So 10% increase in bank size is 0.34% increase in Y.

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    • #3
      I like how the mcp command lets you plot relationships involving logged variables. See pp. 7-10 of

      https://www3.nd.edu/~rwilliam/xsoc73994/Margins03.pdf
      -------------------------------------------
      Richard Williams
      Professor Emeritus of Sociology
      University of Notre Dame
      StataNow Version: 19.5 MP (2 processor)

      EMAIL: [email protected]
      WWW: https://academicweb.nd.edu/~rwilliam/

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