Halvorsen, Robert & Palmquist, Raymond, 1980."The Interpretation of Dummy Variables in Semilogarithmic Equations,"American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.The interpretation of a dummy coefficient b is not a change of b*100 in the dependent variable. The correct interpretation is (exp(X)-1)*100. For small values of b there is no problem, but the difference can be quite large.
Mea culpa: Yes, I think that I've made this mistake before. But at least I am in good company.
1 comment:
(exp(X)-1)*100
I think, there should be b rather than X. Then, the correct formula should be (exp(b)-1)*100
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