14/01/2017

Interpretationoflogarithmsinaregression

Interpretationoflogarithmsinaregression

Ifyoudonotseethemenuontheleftpleaseclickhere

TakenfromIntroductiontoEconometricsfromStockand
Watson,2003,p.215

Y=B0+B1*ln(X)+uA1%changeinXis
associatedwithachangeinYof0.01*B1

ln(Y)=B0+B1*X+uAchangeinXbyoneunit
(X=1)isassociatedwitha100*B1%changeinY

ln(Y)=B0+B1*ln(X)+uA1%changeinXis
associatedwithaB1%changeinY,soB1istheelasticity
ofYwithrespecttoX.

Outofsampletest

SOURCE:http://www.stata.com/help.cgi?predict

predictcanbeusedtomakeinsampleoroutofsamplepredictions:

6)predictcalculatestherequestedstatisticforallpossible
observations,whethertheywereusedinfittingthemodelornot.
predictdoesthisforthestandardoptions(1)through(3)and
generallydoesthisforestimatorspecificoptions(4).

7)predictnewvarife(sample),...restrictsthepredictiontothe
estimationsubsample.

8)Somestatisticsmakesenseonlywithrespecttotheestimation
subsample.Insuchcases,thecalculationisautomatically
restrictedtotheestimationsubsample,andthedocumentationfor
thespecificoptionstatesthis.Evenso,youcanstillspecify
ife(sample)ifyouareuncertain.

9)predictcanmakeoutofsamplepredictionsevenusingother
datasets.Inparticular,youcan
https://www.princeton.edu/~otorres/Stata/inference.htm

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14/01/2017

Interpretationoflogarithmsinaregression

.useds1
(fitamodel)
.usetwo/*anotherdataset*/
.predictyhat,.../*fillinthepredictions*/

https://www.princeton.edu/~otorres/Stata/inference.htm

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