If I run a model where the dependent variable is log sales price of a home and the independent variable in question is (for example) the percent unemployment in the town where the home is located, how do I interpret the coefficient?
Example) ln(sales price) = Bo + B1 * %Unemployed ..........
And say the coefficient on B1 is -0.0014
Do I treat this as log-log model where a 1% increase in unemployment is associated with a 0.0014% decrease in sales price (on avg, all else equal)?
Or do I treat it as log-linear and transform B1*100 to interpret?
I am confusing myself to no end.
Thank you!
-j
0 Response to Interpreting coefficients in log-linear model when independent var is percent
Post a Comment