Hello, I have the following model:
where colony is a binary 0/1.
I want to understand the difference between marginal and average marginal effects. I understand the marginal effect of gdp on demscore to be the partial derivative of y wrt gdp, such that a 1unit increase in gdp is associated with an increase in demscore by the value of the coefficient of gdp. I also understand that the average marginal effect is the partial effect of gdp on demscore for the covariates. When the model is linear such as this one, is the marginal effect and the average marginal effect the same since the value of gdp does not depend on colony?
Code:
reg demscore gdp colony
I want to understand the difference between marginal and average marginal effects. I understand the marginal effect of gdp on demscore to be the partial derivative of y wrt gdp, such that a 1unit increase in gdp is associated with an increase in demscore by the value of the coefficient of gdp. I also understand that the average marginal effect is the partial effect of gdp on demscore for the covariates. When the model is linear such as this one, is the marginal effect and the average marginal effect the same since the value of gdp does not depend on colony?
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