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Re: st: RE: Interpretation of regression outputs when variables are log transformed
From
Nick Cox <[email protected]>
To
[email protected]
Subject
Re: st: RE: Interpretation of regression outputs when variables are log transformed
Date
Thu, 3 Mar 2011 11:36:42 +0000
No. From your results as presented below 1.33 is a slope or gradient
for log X w.r.t. log Y, not for X w.r.t. Y.
I think you need a basic book or to find someone who will explain this
to you one-to-one, as you appear to be asking the same question and
making no progress.
Nick
On Thu, Mar 3, 2011 at 8:37 AM, Marco Buur <[email protected]> wrote:
> Dear Nick
> Thanks for the tip
> I have xtreg, re cluster () model where eform() doesn't work. I run it
> as reg, cluster () and it works. I assume that now we interpret the
> results in the way as without log-log transformation?
> So for every unit increase in Y, a 1.33 unit increase in X will be
> predicted, holding Z variable constant?
> -----------------------------------------------------
> | Robust
> log(X) | GM/Ratio Std. Err. t P>|t|
> -------------+----------------------------------------
> log(Y) | 1.33217 .145 4.44 0.000
> log(Z) | 2.724049 .333 7.67 0.000
>
>
>
> Many thanks
> Marco
> On Wed, Mar 2, 2011 at 7:07 PM, Nick Cox <[email protected]> wrote:
>> This may help:
>>
>> SJ-3-4 st0054 . . . . . . . . . . Stata tip 1: The eform() option of regress
>> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . R. Newson
>> Q4/03 SJ 3(4):445 (no commands)
>> tips for using the eform() option of regress
>>
>> http://www.stata-journal.com/sjpdf.html?articlenum=st0054
>>
>> Nick
>> [email protected]
>>
>> Marco Buur
>>
>> Me and my colleague are not sure that our interpretations of the
>> results are correct. Please confirm!
>>
>> 10% increase in Y will increase X for 1.1^0.223=1.021481649 which is
>> 2.1% and 10 % increase in Z will increase X for 1.1^1.05=1.10525457
>> which is 10.5%.
>>
>> Is this correct?
>>
>> -----------------------------------------------------------
>> | Robust
>> Log(X) | Coef. Std. Err. z P>|z|
>> -------------+----------------------------------------------
>> Log(Y) | .223 .033 3.57 0.000
>> Log(Z) | 1.05 .1045 11.14 0.000
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