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| From | A Loumiotis <antonis.loumiotis@gmail.com> |
| To | statalist@hsphsun2.harvard.edu |
| Subject | Re: st: AW: mfx-Elasticity for a dummy variable |
| Date | Tue, 8 Jun 2010 14:27:45 +0300 |
Yes I agree... although one can compute it at the mean point of T which is different from 0 or 1. But as I said in my first response elasticities with respect to dummy variables have no meaningful interpretation. On Tue, Jun 8, 2010 at 2:18 PM, Martin Weiss <martin.weiss1@gmx.de> wrote: > > <> > > " ...will be the coefficient of the dummy > variable T divided by the dummy variable itself." > > > I do not get this sentence. The dummy is either 0 or 1, as you said. > Dividing by zero is not permissible, and dividing by one does not change > anything, does it? > > > > HTH > Martin > > -----Ursprüngliche Nachricht----- > Von: owner-statalist@hsphsun2.harvard.edu > [mailto:owner-statalist@hsphsun2.harvard.edu] Im Auftrag von A Loumiotis > Gesendet: Dienstag, 8. Juni 2010 13:15 > An: statalist@hsphsun2.harvard.edu > Betreff: Re: st: AW: mfx-Elasticity for a dummy variable > > The elasticity of y with respect to the dummy variable in the way that > you have defined your regression will be the coefficient of the dummy > variable T divided by the dummy variable itself. > > On Tue, Jun 8, 2010 at 2:05 PM, A Loumiotis <antonis.loumiotis@gmail.com> > wrote: >> Nyasha, >> >> The elasticity of y with respect to the dummy variable in the way that >> you have defined your regression will be the coefficient of the dummy >> variable T times the dummy variable itself. If you calculate it at >> the mean point of T then it will be different from the coefficient of >> the dummy variable. If you calculate it at T=1, it will be the same. >> >> However elasticities with respect to dummy variables have no >> meaningful interpretation because the dummy variable changes in a >> discrete fashion (from 0 to 1). >> >> Antonis Loumiotis >> >> On Mon, Jun 7, 2010 at 6:24 PM, Nyasha Tirivayi <ntirivayi@gmail.com> > wrote: >>> Dear Martin >>> >>> Thanks for the code. Now the results are different. I was using the >>> wrong code i.e mfx , dyex at(mean) instead of mfx compute, >>> varlist(logweight) dyex at(mean). >>> >>> Regards >>> >>> Nyasha Tirivayi >>> Maastricht University >>> >>> >>> >>> On Mon, Jun 7, 2010 at 9:16 AM, Martin Weiss <martin.weiss1@gmx.de> > wrote: >>>> >>>> <> >>>> >>>> What is the difference of your example to this one - where the marginal >>>> effects do seem to change: >>>> >>>> >>>> ************* >>>> sysuse auto, clear >>>> gen logprice=log(price) >>>> gen logweight=log(weight) >>>> reg logprice length logweight foreign >>>> mfx compute, varlist(logweight) dydx at(mean) >>>> mfx compute, varlist(logweight) eyex at(mean) >>>> mfx compute, varlist(logweight) dyex at(mean) >>>> mfx compute, varlist(logweight) eydx at(mean) >>>> ************* >>>> >>>> >>>> >>>> HTH >>>> Martin >>>> >>>> -----Ursprüngliche Nachricht----- >>>> Von: owner-statalist@hsphsun2.harvard.edu >>>> [mailto:owner-statalist@hsphsun2.harvard.edu] Im Auftrag von Nyasha > Tirivayi >>>> Gesendet: Montag, 7. Juni 2010 02:50 >>>> An: statalist@hsphsun2.harvard.edu >>>> Betreff: st: mfx-Elasticity for a dummy variable >>>> >>>> Dear All >>>> >>>> I am trying to estimate elasticity for a dummy explanatory variable in >>>> the following model >>>> >>>> ln(y) = a + b ln(x) + T + D Z >>>> >>>> >>>> >>>> I am interested in calculating the elasticity for T a dummy variable >>>> for a "treatment". What is the formula in stata? Is it mfx,dy/dx or >>>> mfx,dyex? >>>> >>>> >>>> >>>> I have done mfx,dyex and the result still remains the coefficient for >>>> T. Could it be that simple? Or there is another way ? >>>> >>>> >>>> >>>> Kindly advise >>>> >>>> >>>> >>>> Nyasha Tirivayi >>>> >>>> Maastricht University >>>> * >>>> * 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/ >>>> >>>> >>>> * >>>> * 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/ >>>> >>> >>> * >>> * 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/ >>> >> > > * > * 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/ > > > * > * 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/ > * * 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/