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From |
Robert Teunissen <[email protected]> |

To |
[email protected] |

Subject |
st: Logistic regression with a log transformed variable How to determine economic significance |

Date |
Sun, 29 Jul 2012 18:21:20 +0200 |

Hi all, I am using a logit regression model 1succes 0failure with six continuous independent variables and two log transformed size variables, total assets and total deposits. My question is how to interpret the results and measure the economic impact, magnitude, size? The normal step in interpretation I take is as follows, I firstly run a stata test on summary statistics (sum), then a logistic regression (logit) and than the marginal effects for the economic significance (mfx). These results can be explained by sentences as: a one standard deviation increase in X (IV) increases the probability of succes by X percent. The results are derived by multiplying the dy/dx of the marginal effects by the Standard deviation to get this percentage economic impact. So far so good, but how do I interpret the results with the two ln(size) variables? And also, how to report them? To clarify my problem I will show you a part of the results: Summary statistics ln total assets mean-1.469624 stdD2.796627 Logistic results ln total assets coeff-0.2381355 stERR0.133577 Z-1.78 PZ0.075 Logistic results with odds ratio ln total assets oddsR0.7880959 stERR0.105275 Z-1.78 PZ0.075 Marginal effects ln total assets dydx-0.2381355 stERR0.0165 Z-1.78 PZ0.075 X-0.7886 In a normal situation with independent variables I would multiply ln(total assets) of the marginal effects -0.2381355 by the standard deviation of the summary statistics 2.796627 which results in an economic impact, after a one standard deviation increase, of -8.22 percent. Although this holds for the other non log variables, this does not sound correct for this ln variable. But how do I interpret the economic significance than with these ln variables? And how do I present them in text? like, a one standard deviation increase, increases the probability. Or something like that? I look very much forward to tour responses and thanks in advance! best regards, Peter Teunissen * * 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/

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