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  • LPM interpretation. Dummy dependent variable and Log independent variable

    Hi everyone.

    I have a confusion on how to interpret a LPM where we have a dummy dependent variable and a Log of expenditure as the independent one.

    Will the interpretation be in percentage or percentage points?

    Also, in what way will we transform the coefficient for interpretation? Will it be b * log(1.01)?

  • #2
    percentage point change in Y for a percent change in X.

    can use margins (eydx, etc..) to get other interpretations or list out predictions at various ln(expenditure) values.

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