Hello everyone,
After a probit regression, I estimated semi-elasticities using eydx option with margins. I get a value of -0.03. My outcome variable (Y) is dummy (0, 1) and the independent variable (X) is log-transformed. How can I interpret the semi-elasticity?
Is it correct if I say a 1 % increase in X leads to a 3% decrease in Y, giving that exp(0.03)=1,030?
Or should I say a 1% increase in X leads to 0.03 % decrease in Y?
After a probit regression, I estimated semi-elasticities using eydx option with margins. I get a value of -0.03. My outcome variable (Y) is dummy (0, 1) and the independent variable (X) is log-transformed. How can I interpret the semi-elasticity?
Is it correct if I say a 1 % increase in X leads to a 3% decrease in Y, giving that exp(0.03)=1,030?
Or should I say a 1% increase in X leads to 0.03 % decrease in Y?
