Large Beta Coefficient Interpretation

For econometric discussions not necessarily related to EViews.

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Large Beta Coefficient Interpretation

Postby sana » Sat Jul 29, 2017 1:54 am


I need your help in EViews estimation.
My final regression model came out to be like:

Y= 226286076.4 – 15421.5 X1 – 14689738 X2 + 0.056726 X3

Where, Y = Incremented home loans, X1= Interest rate, X2= Log of Total Urban Rented Dwellings and X3= Urban Population

But I think that the Beta Coefficients are quite long, can you please help me in interpreting this model??
It is very urgent.

Also all the P-Values are significant, Rsqure = 0.92 and Adjusted Rsquare= 0.90, Probability F is 0.0005 and DW is also 2.97.

Therefore, all the statistics are significant i think.

Please help me in the interpretation of this model.
I'll be really grateful to you.


Non-normality and collinearity are NOT problems!
Posts: 3371
Joined: Wed Sep 17, 2008 2:25 pm

Re: Large Beta Coefficient Interpretation

Postby startz » Sat Jul 29, 2017 8:43 am

Think about the units of your variables. I suspect the values of Y are quite large.
(You should also check out the DW.)

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