Dear Statalists,
I have a question which I tried to look it up here to see if anyone has asked before but I could not seem to find it, so I decide to post here.
I am working on a topic to understand the effect of remittances on household educational expenditure. I also want compare between the impact of remittances and other income excluding remittances. The equation is given by
ln(educational expense) = b0 + b1*ln(remittances) + b2*ln(income) + X'B + u
the problem is that the coefficient is interpreted as "an increase in percentage" and one percent increase in remittances may not be similar to one percent increase in other income. and I want to compare between an increase in remittances and income of the same amount, say, 100 USD. Basically, the impact of remittances and income of the same amount on household educational expenditure. The question is how am I going to do it? I read some economic paper which did exactly like this by somehow retransforming the coefficient into "marginal effect" but they did not mention how to compute it. But I assume it is not as simple as exponentiating the coefficient.
I know some people may suggest not to turn the independent variable into logged form, and I did try to do so but as you may be aware of, income and expenditure often face heteroskedasticity. (And yes I know the way to turn 0 income into logged form).
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