Suppose the regression is y=beta_0+beta_1*x + epsilon. I obtain the eydx=.295 by magins eydx(x) command.
What does Stata really do? Does Stata actually regress logy on x? If so, can I interpret the result as one unit increase in x leads to 0.295 unit increase in y?
Stata manual suggests "proportional change in y for a change in x". Then should I interpret the result as "there is 0.295 unit proportional change in y for a change in x"?
I also notice that eydx is semi-elasticity. So should I interpret this result as " 1 unit increase in x leads to 29.5% in y" or maybe " 0.295% increase in y"?
Are the three interpretation equivalent?
Another issue is if I regress y on x and obtain eyex=a, is it equivalent to regress y on lgx and obtain eydx=b? In other words, does a equal b?
What does Stata really do? Does Stata actually regress logy on x? If so, can I interpret the result as one unit increase in x leads to 0.295 unit increase in y?
Stata manual suggests "proportional change in y for a change in x". Then should I interpret the result as "there is 0.295 unit proportional change in y for a change in x"?
I also notice that eydx is semi-elasticity. So should I interpret this result as " 1 unit increase in x leads to 29.5% in y" or maybe " 0.295% increase in y"?
Are the three interpretation equivalent?
Another issue is if I regress y on x and obtain eyex=a, is it equivalent to regress y on lgx and obtain eydx=b? In other words, does a equal b?