Elasticity to marginal effect
Posted: Wed Jul 08, 2015 6:55 am
Hi!
I estimated an ECM Model. My variables are in DLOGs and LOGs. Therefor my coefficients are elasticities. However I want to get the effect of a 1% change of an explanatory variable on the dependent variable(marginal effect). My dependent variable is C (consumption). My explanatory variables are WS, Y, HHD. My coefficient WS (wage-share) from my estimation result should be (dC/C)/(dWS/WS).
How do I get the marginal effect of WS on C. As far as I know I have to compute the averages of WS and C.
But how do I do that in a program? Do you have any useful program to do that? I know I could do that by hand. However I would prefer a program.
By the way, I am doing a panel.
Thank you for your help!
YK
I estimated an ECM Model. My variables are in DLOGs and LOGs. Therefor my coefficients are elasticities. However I want to get the effect of a 1% change of an explanatory variable on the dependent variable(marginal effect). My dependent variable is C (consumption). My explanatory variables are WS, Y, HHD. My coefficient WS (wage-share) from my estimation result should be (dC/C)/(dWS/WS).
How do I get the marginal effect of WS on C. As far as I know I have to compute the averages of WS and C.
But how do I do that in a program? Do you have any useful program to do that? I know I could do that by hand. However I would prefer a program.
By the way, I am doing a panel.
Thank you for your help!
YK