elasticity at the mean

[bparksb]

Eviews 7

View Coefficient Diagnostics Scaled Coefficients
reports Elasticities at the mean - the help file states
The elasticity at the means are the point estimates of the coefficients scaled by the mean of the dependent variable divided by the mean of the regressor.
Yes, that is what is calculated but that is WRONG. Elasticity is calculated as slope*X/Y -
e.g., change in Y/Y divided by change in X/X
or view http://www.stata.com/support/faqs/stat/mfx_eyex.html

The standardized coefficients are correct.

Bob Parks

[EViews Gareth]

EViews calculates the elasticity at means as Coefficient_on_X * Mean(X)/Mean(Y), which is what you state is correct. The documentation might be a little unclear, but it says that it is calculated as the point estimates scaled by the mean of Y divided by the mean of X, where "scaled" is being used for "divided by".

[bparksb]

Sorry, I constructed an example and alas too late at night because today I see that you are right.
Bob

[zeca]

Hi there,
I need to obtain the coeffients elasticity but the option Scaled Coefficients doesn't exist in View Coefficient Diagnostics.
I have the eviews8
Could you give me some help on this?
thanks!

[EViews Gareth]

What sort of equation do you have?

[zeca]

What sort of equation do you have?

Panel Least Squares

[EViews Gareth]

It isn't offered for panel equations.

[zeca]

It isn't offered for panel equations.

ok, and there is any other way to calculate it for panel data equations in eviews?
thanks

[EViews Gareth]

I'm sure it can be calculated manually, if you can figure out what the calculation is.

[zeca]

I'm sure it can be calculated manually, if you can figure out what the calculation is.

Are you thinking in the following calculation?
If equation Y=a+bX1 + cX2
Elasticity X1 = Coefficient_on_X1 * Mean(X1)/Mean(Y)
Elasticity X2 = Coefficient_on_X2 * Mean(X2)/Mean(Y), ...

[EViews Gareth]

I suppose the question is, what is the mean in a panel?

[zeca]

I suppose the question is, what is the mean in a panel?

as you probably gathered so far, my econometric knowledge is not so great, could you be more specific please?
Many thnks, we've been real helpful to me!

[EViews Gareth]

I don't know what the calculation of elasticity at means is in a panel setting. If you can figure that out, you can probably calculate it easily enough in EViews.

[zeca]

I don't know what the calculation of elasticity at means is in a panel setting. If you can figure that out, you can probably calculate it easily enough in EViews.

me neither :( I tried searching for it in the web but I couldn't find anything. The papers I read do not explain the calculation, just present the results....

If someone else have any idea, please help...

[bparksb]

The elasticity at the mean is exactly
If equation Y=a+bX1 + cX2 + crossection effects + time effects
Elasticity X1 = Coefficient_on_X1 * Mean(X1)/Mean(Y)
Elasticity X2 = Coefficient_on_X2 * Mean(X2)/Mean(Y), ...
So long as the coefficients do not change across time or cross section, the elasticity at each point of the data would be the series
Elasticity X1 = Coefficient_on_X1 *X1/Y
If the coefficients differ over cross sections, then it is the coefficient for each cross section times the ratio of means for that cross section.
Alas, I don't have a reference and I am too lazy to write it out long hand.