economic significance

[hend elgamiel]

hi everybody

how i can calculate economic significance of independent variable?

[Carlo Lazzaro]

Hend:
short answer: there's no clear-cut methodological approach.
It's like the difference between statistical significance and practical significance (the lattrer contextualized in a given research field.)
That said, you may want to take a look at. https://tien89.wordpress.com/2010/03...y-significant/

[hend elgamiel]

what about this equation
coefficient x * standard deviation x / mean y
can use it to obtain economic significance?

[Carlo Lazzaro]

Hend:
the story remains the same.
You're asking for a quantitative approach to deal with a qualitative (or, at best, partially quantitative) issue.
Let's make an example:
if you enroll two pretty large samples of workers (the persons enrolled in first sample attend to a work-shop aimed at increasing their professional skills; the others do not) according to very detailed sample study, you can prove that the mean difference of the disposable income between the two samples is (say) €1000 per year (p<0.001, that is really significant in statistical terms)
But what about the practical side of the matter?
If €1000 per year is the mean difference between €5000 and €6000, the effect of the workshop is remarkable; but if I€1000 per year is the mean difference between €50,000 and €51,000 attending the work-shop has, at best, a tenuous effect on workers'income.