Interpretation of estimated coefficients

[Usagi]

http://img502.imageshack.us/img502/402/question2s.jpg

 

[CaptainBlack]

http://img502.imageshack.us/img502/402/question2s.jpg

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

 

[Usagi]

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 :)

 

[CaptainBlack]

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