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Re: st: interpreting coefficients in growth equation
From
Charles Koss <[email protected]>
To
[email protected]
Subject
Re: st: interpreting coefficients in growth equation
Date
Sat, 26 Mar 2011 14:07:24 -0500
on average, an additional year changes BMI_growth by 0.11, b2 might be
an elasticity (1% change in logincome causes 0.14% in BMI_growth ).
b1, a unit change from the average present level of BMI changes the
BMI_growth by 0.33; in other words, increases the growth of BMI. So, i
think you may have divergence rather than convergence.
Does it make sense? otherwise, provide more details about the dataset.
--
Charles Koss
http://charlesonnet.blogspot.com
On Fri, Mar 25, 2011 at 9:41 PM, D-Ta <[email protected]> wrote:
> Dear all,
>
> I am having problems to interpret my regression coefficients.
>
> Using pooled OLS on panel data, the estimated model is the following:
>
> BMI_growth_future=b0+b1*BMI_present+b2*logIncome+b3*Age+u
>
>
> BMI_growth is a percentage growth rate (in percent, i.e. *100) of BMI
> between the present period and some future period.
> BMI_present is the present level of BMI (this coefficient is included to
> controll for convergence effects)
> LogIncome and Age are self explaining.
>
> I get the following OLS estimates:
>
> b0=3.5
> b1=-0.33
> b2=0.14
> b3=0.11
>
> I am interested how to know how to interpret the coefficients and I am
> very thankful for help.
>
> Darjusch (PhD candidate)
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