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st: glm elasticity interpretation
From
"Dimitriy V. Masterov" <[email protected]>
To
Statalist <[email protected]>
Subject
st: glm elasticity interpretation
Date
Fri, 9 Sep 2011 11:57:14 -0400
I am having some trouble figuring out how I can interpret coefficients
from the following toy glm model:
sysuse auto, clear
gen lmpg=ln(mpg)
glm price lmpg i.foreign, link(log)
Can I interpret the lmpg coefficient of -1.39 as saying that a 1%
increase in mpg lowers the expected price by $1.39? If a car is
foreign, that raises the price by 32 cents?
If I want elasticities for the two covariates, should I do:
margins, eydx(lmpg)
margins, eydx(foreign)
Or is better to estimate the model without logging mpg and use eyex():
glm price mpg i.foreign, link(log)
margins, eyex(mpg)
I am having trouble reconciling the coefficient effects with the
margins approach.
DVM
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