Interpretation of estimated coefficients

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Discussion Overview

The discussion revolves around the interpretation of estimated coefficients in a linear regression model related to trade and distance. Participants explore the implications of the coefficients and the correct phrasing for their interpretations.

Discussion Character

  • Technical explanation, Conceptual clarification, Debate/contested

Main Points Raised

  • One participant asserts that the model is indeed linear and suggests that the coefficient for the distance term should be negative, indicating that trade is expected to decline with increasing distance.
  • Another participant expresses concern about the wording of their interpretation, emphasizing the need to list all other variables instead of using the phrase "all else constant," as advised by their teacher.
  • A later reply critiques the idea of excessive pedantry, suggesting that it may hinder understanding, while reiterating that the coefficient represents the partial derivative of trade flow with respect to distance.

Areas of Agreement / Disagreement

Participants generally agree on the linearity of the model, but there is a debate regarding the appropriate level of detail in interpreting the coefficients and the implications of pedantic language.

Contextual Notes

There is an emphasis on the importance of precise language in interpretation, but the specific variables to be listed are not detailed in the discussion. The implications of the coefficient's sign are also discussed without reaching a consensus on the best interpretation approach.

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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