To provide context, I am running a fixed effects regression model, assessing the relationship between the percent an organization spends on overhead to how much it produces in terms of the number of houses built, as well as how much revenue it generates.
My independent variable is the overhead ratio, which is between 0 and 1. My dependent variable is the log of the total number of houses. The coefficient is .88 and significant. So, I take the exponent of .88, which I believe is 2.41, subtract 1 and multiply times 100, which gives me 141%. For the interpretation, I'm saying that a one-percentage-point increase in the overhead ratio equates to a 141% increase in the total number of houses built. However, this seems way too high.
I also use a second dependent variable - the log of total revenue. For this, I get a significant coefficient of .32, which again, I take the exponent of .32 and get 1.38. I then subtract 1 and multiply times 100, which gives me 37.17%. I interpret this as a one-percentage-point increase in the overhead ratio equates to a 37.17% increase in total houses built. Again, this seems way too high to me.
Am I doing the calculations and interpretations correctly? Many thanks in advance!
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