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| From | A Loumiotis <antonis.loumiotis@gmail.com> |
| To | statalist@hsphsun2.harvard.edu |
| Subject | Re: st: AW: mfx-Elasticity for a dummy variable |
| Date | Tue, 8 Jun 2010 14:05:30 +0300 |
Nyasha, The elasticity of y with respect to the dummy variable in the way that you have defined your regression will be the coefficient of the dummy variable T times the dummy variable itself. If you calculate it at the mean point of T then it will be different from the coefficient of the dummy variable. If you calculate it at T=1, it will be the same. However elasticities with respect to dummy variables have no meaningful interpretation because the dummy variable changes in a discrete fashion (from 0 to 1). Antonis Loumiotis On Mon, Jun 7, 2010 at 6:24 PM, Nyasha Tirivayi <ntirivayi@gmail.com> wrote: > Dear Martin > > Thanks for the code. Now the results are different. I was using the > wrong code i.e mfx , dyex at(mean) instead of mfx compute, > varlist(logweight) dyex at(mean). > > Regards > > Nyasha Tirivayi > Maastricht University > > > > On Mon, Jun 7, 2010 at 9:16 AM, Martin Weiss <martin.weiss1@gmx.de> wrote: >> >> <> >> >> What is the difference of your example to this one - where the marginal >> effects do seem to change: >> >> >> ************* >> sysuse auto, clear >> gen logprice=log(price) >> gen logweight=log(weight) >> reg logprice length logweight foreign >> mfx compute, varlist(logweight) dydx at(mean) >> mfx compute, varlist(logweight) eyex at(mean) >> mfx compute, varlist(logweight) dyex at(mean) >> mfx compute, varlist(logweight) eydx at(mean) >> ************* >> >> >> >> HTH >> Martin >> >> -----Ursprüngliche Nachricht----- >> Von: owner-statalist@hsphsun2.harvard.edu >> [mailto:owner-statalist@hsphsun2.harvard.edu] Im Auftrag von Nyasha Tirivayi >> Gesendet: Montag, 7. Juni 2010 02:50 >> An: statalist@hsphsun2.harvard.edu >> Betreff: st: mfx-Elasticity for a dummy variable >> >> Dear All >> >> I am trying to estimate elasticity for a dummy explanatory variable in >> the following model >> >> ln(y) = a + b ln(x) + T + D Z >> >> >> >> I am interested in calculating the elasticity for T a dummy variable >> for a "treatment". What is the formula in stata? Is it mfx,dy/dx or >> mfx,dyex? >> >> >> >> I have done mfx,dyex and the result still remains the coefficient for >> T. Could it be that simple? Or there is another way ? >> >> >> >> Kindly advise >> >> >> >> Nyasha Tirivayi >> >> Maastricht University >> * >> * For searches and help try: >> * http://www.stata.com/help.cgi?search >> * http://www.stata.com/support/statalist/faq >> * http://www.ats.ucla.edu/stat/stata/ >> >> >> * >> * For searches and help try: >> * http://www.stata.com/help.cgi?search >> * http://www.stata.com/support/statalist/faq >> * http://www.ats.ucla.edu/stat/stata/ >> > > * > * For searches and help try: > * http://www.stata.com/help.cgi?search > * http://www.stata.com/support/statalist/faq > * http://www.ats.ucla.edu/stat/stata/ > * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/