Hi,
I have a regression model with among other variables that I understand how to interpret, a fraction variable (Percentage allocated to each asset class) measured in percentage points change from t-1 to t as a independent variable and a dependent variable that measure the change in solvency ratio measured in percentage points as a dependent variable. I have checked in several respected research papers, but I am still confused about the interpretation. I have found som research that interprets the coefficient as: A 1 percentage point increase in the change of the fraction will lead to a increase in the change of the solvency of B1 basis points?
An example: if my coefficient for allocation towards equities is 5, how should this be interpreted given my context?
I know this isn't directly related to Stata, but any feedback on this will be greatly appreciated.
I have a regression model with among other variables that I understand how to interpret, a fraction variable (Percentage allocated to each asset class) measured in percentage points change from t-1 to t as a independent variable and a dependent variable that measure the change in solvency ratio measured in percentage points as a dependent variable. I have checked in several respected research papers, but I am still confused about the interpretation. I have found som research that interprets the coefficient as: A 1 percentage point increase in the change of the fraction will lead to a increase in the change of the solvency of B1 basis points?
An example: if my coefficient for allocation towards equities is 5, how should this be interpreted given my context?
I know this isn't directly related to Stata, but any feedback on this will be greatly appreciated.
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