Coefficient interpretation

Question 1

How do you interpret a level - level relationship?

Y - X

Answer 1

For 1 unit increase in X, Y increases with beta units on average , ceteris paribus

Question 2

How do you interpret a log - log relationship?

lnY lnX

Answer 2

For 1% increase in X, Y increases by beta percentages on average, ceteris paribus

Question 3

How do you interpret a log - level relationship

LnY - X

Answer 3

For 1 unit increase in X, Y increases with beta * 100% on average, ceteris paribus

Question 4

How do you interpret a level - log relationship?

Y - lnX

Answer 4

For 1% increase in X, Y increases by beta/100 units on average ceteris paribus

Question 5

How do you interpret a level - dummy relationship?

Answer 5

For dummy=1, Y increases with beta units compared to the reference category on average, ceteris paribus

Question 6

How do you interpret a log - dummy relationship?

Answer 6

For dummy=1, Y increases with beta*100% compared to the reference category on average, ceteris paribus