Dear All,
I hope this message finds you well. I have a question regarding the calculation of economic significance that isn't directly related to Stata, but I believe the members of this group might be able to help clarify it for me.
The doubt pertains to a paper published in Management Science, which you can find here (https://pubsonline.informs.org/doi/pdf/10.1287/mnsc.2021.4055). The dependent variables in the study are innovation metrics, specifically ln(1 + Patent) and ln(1 + Citation), for industry i, country j, and year t. The main explanatory variable is "Trust" in country j, measured in year t − 1.
In the results section, particularly in Table 3, the authors computed economic significance by stating that a one-standard-deviation increase in social trust (0.153) is associated with a 53% increase in the number of patents and a 56% increase in the number of patent citations, relative to their respective sample means. They provided a footnote (No.14) which I find quite confusing.
I typically compute economic significance using the formula: (Coefficient * SD of independent variable) / Mean of the dependent variable. However, the authors seem to have derived a different value altogether.
If anyone could explain their method, it would greatly enhance my understanding of the computation of economic significance.
Thank you in advance for your assistance.
I hope this message finds you well. I have a question regarding the calculation of economic significance that isn't directly related to Stata, but I believe the members of this group might be able to help clarify it for me.
The doubt pertains to a paper published in Management Science, which you can find here (https://pubsonline.informs.org/doi/pdf/10.1287/mnsc.2021.4055). The dependent variables in the study are innovation metrics, specifically ln(1 + Patent) and ln(1 + Citation), for industry i, country j, and year t. The main explanatory variable is "Trust" in country j, measured in year t − 1.
In the results section, particularly in Table 3, the authors computed economic significance by stating that a one-standard-deviation increase in social trust (0.153) is associated with a 53% increase in the number of patents and a 56% increase in the number of patent citations, relative to their respective sample means. They provided a footnote (No.14) which I find quite confusing.
I typically compute economic significance using the formula: (Coefficient * SD of independent variable) / Mean of the dependent variable. However, the authors seem to have derived a different value altogether.
If anyone could explain their method, it would greatly enhance my understanding of the computation of economic significance.
Thank you in advance for your assistance.
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