Estimates from a log-linear regression model
Posted: Sun Jun 15, 2014 6:09 am
Hello all,
I am estimating a economic growth regressions using dynamic panel data.
My specification is as folllows:
Ln(Y_i,t) = a*Ln(Y_i,t-1) + b*X_i,t + e_i,t
- Y measures income per capita
- X is the independent variable of interest, which represents a certain share of GDP (e.g. 0.05)
From the specification it follows that I am estimating the effect on economic growth as well:
Ln(Y_i,t) - Ln (Y_i,t-1) = (a - 1)*Ln(Y_i,t-1) + b*X_i,t + e_i,t
After running the model, the estimate for b is 0.07. Can someone help me interpret this estimate? I would like to know what the change in growth rate is following from this 0.07.
Thanks in advance!
Maarten
I am estimating a economic growth regressions using dynamic panel data.
My specification is as folllows:
Ln(Y_i,t) = a*Ln(Y_i,t-1) + b*X_i,t + e_i,t
- Y measures income per capita
- X is the independent variable of interest, which represents a certain share of GDP (e.g. 0.05)
From the specification it follows that I am estimating the effect on economic growth as well:
Ln(Y_i,t) - Ln (Y_i,t-1) = (a - 1)*Ln(Y_i,t-1) + b*X_i,t + e_i,t
After running the model, the estimate for b is 0.07. Can someone help me interpret this estimate? I would like to know what the change in growth rate is following from this 0.07.
Thanks in advance!
Maarten