Hello stata users,
Hope you are doing well.
I have a question regarding interpreting stata output in the following situation.
Regression is on monthly panel data.
The dependent variable is log transformed and the independent are percentages.
How to interpret an output as following:
y = 0.50 + 20*b1 + -110*b2 + e
Mean y: 0.4 SD: 1.5
Mean b1: 0.02 SD: 0.003
Mean b2: -0.001 SD: 0.04
y is the log of a first difference at monthly level.
b1 represents a yearly change (% change).
b2 is an interest rate.
Then the following question is:
In economics literature I often come across the following interpretation:
A 1-standard-deviation higher b1 leads to a .... pp increase of y.
How do the economists calculate this?
Looking forward to your handful insights!
Thank you in advance, best wishes Dominique
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