st: Re: statalist-digest V4 #4184

[Christopher Baum <kit.baum@bc.edu>]

<>
So-called 'beta coefficients' express one measure of relative importance. To compute them just add the option beta to regress. They measure the response to a 1 sigma change in the X variable, in terms of the sigma of the Y-variable. Economists would be more familiar with elasticities, which you can also compute with margins, eyex(_all). Those measure percent change in Y in response to percent change in X. Relative magnitudes of either could be used to evaluate importance.

Kit

On Jun 15, 2011, at 8:33 AM, Stefan wrote:

> 
> I am running an OLS, see below, in which I relate 3 variables (currentratio, margin and da) to OAS, all continuous. I control for industry and country (twice a triple dummy, added to the equation). Seems to perform reasonably well to me. However, I have one last issue to overcome. I would like to determine the relative importance to the model, and especially the hierarchy of this importance, of the three independent variables currentratio, margin and da. Probably this is task must be doable but I cant seem to find a proper way through any academic articles or google. Can anyone help me in this?
> 
> Thank you,


Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                              An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html




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