Interpretation of estimated coefficients

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SUMMARY

The discussion confirms that the model in question is indeed a linear model, specifically referencing regression output from Eviews 7. The coefficient for the distance term is expected to be negative, indicating that trade between countries declines as distance increases. Participants emphasize the importance of precise wording in interpretations, advocating for clarity over excessive pedantry. The interpretation should focus on the partial derivative of trade flow concerning distance.

PREREQUISITES
  • Understanding of linear regression models
  • Familiarity with Eviews 7 software
  • Knowledge of interpreting regression coefficients
  • Concept of partial derivatives in economics
NEXT STEPS
  • Study linear regression analysis techniques
  • Learn how to interpret regression outputs in Eviews 7
  • Research the concept of partial derivatives in economic models
  • Explore best practices for writing clear statistical interpretations
USEFUL FOR

Economists, data analysts, students in statistics or econometrics, and anyone involved in interpreting regression models and their coefficients.

Usagi
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Usagi said:
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Is this a linear model?

If so you expect the coefficient for the distance term be negative, other things being equal you expect the trade between the countries to decline with increasing distance. The coefficient is the rate at which trade varies with distance.

CB
 
Oh yeah sorry I forgot to add (yes it is a linear model), but attached is the regression output from Eviews 7:

My main concern is whether my wording for the interpretation is correct or not because my teacher told me to be very pedantic when giving an interpretation and rather than saying "all else constant" I have to list out all the other variables.

Thanks :)
 

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Usagi said:
Oh yeah sorry I forgot to add (yes it is a linear model), but attached is the regression output from Eviews 7:

My main concern is whether my wording for the interpretation is correct or not because my teacher told me to be very pedantic when giving an interpretation and rather than saying "all else constant" I have to list out all the other variables.

Thanks :)

Too much pedantry is the enemy of understanding.

It is the partial derivative of the trade flow with respect to distance.

CB
 
Last edited:

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