Hey Statalisters,
Using the command ologit I ran some Ordered Logit regressions with one of
the covariates (number of a firm´s employees) in a log transformed form
(since theory suggest a declining marginal effect)
My question concerns the interpretation of the marginal effects of the
log-transformed variable "number of employees" (mfx are computed with
respect to the outcome variable =3) .
I would think the following interpretation is right:
- A marginal increase in the log-transformed number of employees
changes the probability of my outcome variable being 3 by XXX
percentage points.
But: By log-transforming my continous variable "employees" I could (or have
to) interpret the changes in terms of percent changes, something like
- A one percent increase in the number of employees (the actual
number, not the log-transformed)changes the probability of
my outcome variable being 3 by XXX percentage points.
Any hints on which version is right? Both, none?
Thanks
Florian
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