Dear,
I am using PPML to analyze the impact of institutions on exports.
My question is, can coefficients be interpreted as elasticities? just like traditional logarithmic model?
For example, if I get 0.10 for the Income variable using PPML, then the interpretation is that the 1% increase in income causes the 0.10% increase in exports?
And for binary variables, which get 0 or 1, as boundary and language is this interpretation the same? Or do I need to do some transformation to analyze the results?
Sorry for the poorly written English, but I am Brazilian and still have difficulties with English.
Thanks
Maitê
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