Re: st: RE: pooled ols interpretation, thanks

["Michael Blasnik" <michael.blasnik@verizon.net>]

I don't want to get too deep into semantics here, but perhaps you should 
have included the companion statement that no change in education results in 
an 8% increase in family income in 1991, to make it clear that it is not 
actually the one year change in education that is making the 20% increase in 
income (like your statement says), it is still only making a 12% increase.

Maybe we should just agree to disagree.

Michael

----- Original Message ----- 
From: "White, Justin" <JWhite@yesvirginia.org>
To: <statalist@hsphsun2.harvard.edu>
Sent: Friday, January 19, 2007 2:23 PM
Subject: RE: st: RE: pooled ols interpretation, thanks



> What I am saying is "If you are saying that is the impact of a year of
> education plus the impact of the year being 1991"
>
> That is why I made reference to the year in my statement.
>
> Justin White
>
> -----Original Message-----
> From: owner-statalist@hsphsun2.harvard.edu
> [mailto:owner-statalist@hsphsun2.harvard.edu] On Behalf Of Michael
> Blasnik
> Sent: Friday, January 19, 2007 2:14 PM
> To: statalist@hsphsun2.harvard.edu
> Subject: Re: st: RE: pooled ols interpretation, thanks
>
> Here is your last sentence:
>
> Without knowing the constant, you could say that an increase in 1 year
> of
> education in 1991 results in a (0.12+0.08 = 0.20) 20% increase in family
>
> income.
>
> You have added together the coefficients for a year dummy and education
> and
> claimed that this is the marginal effect of a year of education.  That
> is
> incorrect.  If you are saying that is the impact of a year of education
> plus
> the impact of the year being 1991 rather than the omitted reference
> year,
> then you are correct, but that is not how I read that statement (and
> what
> would the constant have to do with any of this anyway?).
>
> Michael Blasnik
>
>
> ----- Original Message ----- 
> From: "White, Justin" <JWhite@yesvirginia.org>
> To: <statalist@hsphsun2.harvard.edu>
> Sent: Friday, January 19, 2007 2:06 PM
> Subject: RE: st: RE: pooled ols interpretation, thanks
>
>
>
> > >You are confusing the point estimate and the marginal effect.
> >
> > I don't believe I am made a mistake.  I stated in my message that "The
> > years only come into play if you wanted to calculate a point estimate
> > for the growth in family income"
> >
> >
> >
> > Justin White
> >
> > -----Original Message-----
> > From: owner-statalist@hsphsun2.harvard.edu
> > [mailto:owner-statalist@hsphsun2.harvard.edu] On Behalf Of Michael
> > Blasnik
> > Sent: Friday, January 19, 2007 1:59 PM
> > To: statalist@hsphsun2.harvard.edu
> > Subject: Re: st: RE: pooled ols interpretation, thanks
> >
> > This is incorrect.  The marginal effect of education would still be
> > estimated as the coefficient on education regardless of the values of
> > the
> > other variables (there are no interaction terms).  You are confusing
> the
> > point estimate and the marginal effect.
> >
> > Please refrain from posting if you aren't fairly certain of your
> answer.
> > I
> > also think the list may be indulging too much in answering very
> > elementary
> > statistics questions which have nothing to do with Stata directly and
> > can be
> > answered through many other available resources other than Statalist.
> >
> > Michael Blasnik
> >
> >
> > ----- Original Message ----- 
> > From: "White, Justin" <JWhite@yesvirginia.org>
> > To: <statalist@hsphsun2.harvard.edu>
> > Sent: Friday, January 19, 2007 1:27 PM
> > Subject: RE: st: RE: pooled ols interpretation, thanks
> >
> >
> >
> > > Take the estimated coefficients for education, d91, and the constant
> > and
> > > add them together.  You can do this b/c all of you independent
> > variables
> > > are regressed in levels.  Without knowing the constant, you could say
> > > that an increase in 1 year of education in 1991 results in a
> > (0.12+0.08
> > > = 0.20) 20% increase in family income.
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