MHB Interpretation of estimated coefficients

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The discussion confirms that the model in question is linear, with the expectation that the coefficient for distance will be negative, indicating that trade decreases as distance increases. The coefficient reflects the rate of change in trade relative to distance. There is a focus on the importance of precise wording in interpreting the coefficients, with a suggestion to avoid overly pedantic language that may hinder understanding. The interpretation should emphasize the partial derivative of trade flow concerning distance. Clarity in communication is essential for effective analysis.
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
 
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