Interpretation of the coefficients
Posted: Wed Apr 03, 2013 5:36 am
Good evening!
I have a question regarding the interpretation of the coefficient.
I have run a regression that has to explain monthly changes in food price index given information on oil and wheat prices. I tried to play with the regressors and at some moment have added both an AR(1) term and a dependent variable with one month lag to the right side of the equation, and they both proved to be statistically significant and improved the model (based on AIC). However, I am stuck with interpreting the coefficient of a dependent variable with one month lag. What could it mean economically?
Thanks!
P.S. I attach the workfile to this message if it helps.
I have a question regarding the interpretation of the coefficient.
I have run a regression that has to explain monthly changes in food price index given information on oil and wheat prices. I tried to play with the regressors and at some moment have added both an AR(1) term and a dependent variable with one month lag to the right side of the equation, and they both proved to be statistically significant and improved the model (based on AIC). However, I am stuck with interpreting the coefficient of a dependent variable with one month lag. What could it mean economically?
Thanks!
P.S. I attach the workfile to this message if it helps.