Dear all,
I have question on how to interpret the results from a log log model.
My understanding is that the coefficient of the log transformed variable is the estimated percent change in the dependent variable for a percent change in the independent variable, i.e., the coefficient represents the elasticity of the dependent variable with respect to the independent variable.
If now I have a regression that the log transformed independent variable is also interacted with another continuous variable, can I estimate the overall elasticity using:
Moreover, if I want to calculate the elasticity at different values of length can I use the following?
Thank you very much for your time!
I have question on how to interpret the results from a log log model.
My understanding is that the coefficient of the log transformed variable is the estimated percent change in the dependent variable for a percent change in the independent variable, i.e., the coefficient represents the elasticity of the dependent variable with respect to the independent variable.
If now I have a regression that the log transformed independent variable is also interacted with another continuous variable, can I estimate the overall elasticity using:
Code:
sysuse auto, clear gen lnprice = ln(price) gen lnweight = ln(weight) reg lnprice c.lnweight##c.length i.rep78 i.foreign margins , dydx(lnweight)
Code:
margins , dydx(lnweight) at(length=(150(10)230))
