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From |
Richard Williams <richardwilliams.ndu@gmail.com> |

To |
statalist@hsphsun2.harvard.edu, statalist@hsphsun2.harvard.edu |

Subject |
Re: st: relative importance of independent variables |

Date |
Tue, 14 Jun 2011 12:24:05 -0500 |

At 07:26 AM 6/14/2011, Maarten Buis wrote:

On Tue, Jun 14, 2011 at 2:04 PM, Stefan Nijssen wrote:> I am running an OLS, see below, in which I relate 3 variables(currentratio, margin and da) to OAS, all continuous. I control forindustry and country (twice a triple dummy, added to the equation).Seems to perform reasonably well to me. However, I have one lastissue to overcome. I would like to determine the relativeimportance to the model, and especially the hierarchy of thisimportance, of the three independent variables currentratio, marginand da. Probably this is task must be doable but I cant seem tofind a proper way through any academic articles or google.This is a problem of standardization; you must make sure that these three variables have the same unit. A common strategy is to divide each variable with its standard deviation, so now all effects are the effects of one standard deviation increase. See e.g. the -beta- option in -regress-. Whether that makes sense is a substantive question. Hope this helps, Maarten

------------------------------------------- Richard Williams, Notre Dame Dept of Sociology OFFICE: (574)631-6668, (574)631-6463 HOME: (574)289-5227 EMAIL: Richard.A.Williams.5@ND.Edu WWW: http://www.nd.edu/~rwilliam * * 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/

**References**:**st: relative importance of independent variables***From:*Stefan Nijssen <stefannijssen@gmail.com>

**Re: st: relative importance of independent variables***From:*Maarten Buis <maartenlbuis@gmail.com>

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