I have read a lot of questions and answers but I am still confused for my case. My dependent variable (employment growth) is measured : $$ \frac{((number\ of\ employees \ in \ year\ t) - (number \ of \ employees \ in \ year \ t-1))}{[((number \ of \ employees \ in \ year \ t) + (number \ of \ employees \ in \ year \ t-1))/2]}*100 $$ It is defined in percentage (%). It can takes values from -100 to 100 (continuous). 1)I have an independent in log value. 2) I have an independent - indicator which can take values from 0 to 50 (continuous). Let's say I have this: $$ eg = 80 + 1.48 \ log(x) + 6.044 \ Indicator + \epsilon $$ How I interpret coefficient for each independent... Thanks in advance!
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What about it confuses you? Have you taken a course in regression? – Peter Flom Mar 18 '18 at 13:38
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So, my point is : 1) For a 1% increase in x , we expect a 1.48 % increase in eg. 2) For a 1-unit increase in indicator, we expect a 6.044 increase in eg. Am I right ? The thing is that eg is already defined in percentage (%) , so I think there is something wrong with my thoughts... – ec on Mar 18 '18 at 13:47
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You can interpret it like a regular regression (as you did in your reply to my comment, above). However, since the dependent variable is bounded by -100 and 100, regular OLS regression might not be appropriate and the regression equation might make nonsensical predictions. This thread or this one may be helpful.
Peter Flom
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