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Re: st: Economic significance of categorical variable


From   Ronnie Babigumira <[email protected]>
To   [email protected]
Subject   Re: st: Economic significance of categorical variable
Date   Tue, 11 Feb 2014 09:34:14 +0100

I suppose you have looked at
http://tien89.wordpress.com/2010/03/05/statistically-vs-economically-significant/

This may also help http://www.tandfonline.com/doi/pdf/10.1080/13501780903337339

On Mon, Feb 10, 2014 at 11:07 PM, Nerissa Fanoembi
<[email protected]> wrote:
> ear Statalist,
>
> I am wondering how I can interpret the economic significance of categorical variables.
> For example I research the effect of the employer type (public or private sector employees) on risk aversion. I find that the probability of being risk averse in the public sector is 6.3 percentage points greater than in the private sector. The sample consists of 1137 individuals. How do I know whether this effect is economic significant?
>
> Best regards,
>
> Nerissa.
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