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- Wed Oct 06, 2010 8:20 pm
- Forum: Econometric Discussions
- Topic: D(logY) = c + b1 D(logX1), How to interpret b1?
- Replies: 5
- Views: 9299
D(logY) = c + b1 D(logX1), How to interpret b1?
When running log-log model in differences to correct for unit root: D(logY) = c + b1 D(logX1) what would be the correct interpretation of b1? : - a 1% increase in X1 is associated with a b1 percent increase in Y, OR - a 1% increase in X1 is associated with a b1 percent increase in the rate of change...