
Probability and Statistics Basic Probability and Statistics Math Forum 
 LinkBack  Thread Tools  Display Modes 
June 4th, 2017, 06:42 AM  #1 
Newbie Joined: May 2015 From: sweden Posts: 12 Thanks: 0  Regression
Hello! I need help to interpret my regression results. i have a hard time understanding when there is percentage point or not. My regression: i have an excel file with following variables: Real GDP growth / capita i have calculated this myself with formula ((year 2 year 1)/year 1)* 100 Real GDP / capita year t1 just lagged one year back Delta minimum wage calculated myself with ((year 2 year 1)/year 1)* 100 , (thus i have the level of minimum wage too but its not included in my regression) Delta unemployment calculated myself as year 2  year 1 ex: 5,7  5,5 = 0,2 Unemployment year t1 expressed as 5,7 meaning 5,7% Regression 1: Y Real GDP growth / capita = delta minimum wage + Real GDP / capita t1 Regression 2: Y delta unemployment = delta minimum wage + unemployment t1 Results: regression 1: Y (Real GDP growth / capita) = 0,159*** + 0,0143*(minlwage) + 0,0002397***(gdp level) regression 2: Y (delta unemployment) = 0,890209** + 0,006508*(minwage) + 0,230477***(unemployment level) To interpret these results more i do this: regression 1: an increase of minimum wage by 10% will lead to a decrease in GDP growth/ capita by 0,143 %. I then took the average growth in GDP/capita over the period i studied and found 1,77%. Can i say that the new growth would be 1,77  0,143 = 1,627% ? Regression 2: an increase of the minimum wage by 10% will lead to an increase in unemployment by 0,06508%. I looked up the unemployment numbers in USA which is 4,4% and 7 000 000 people. Thus 1% means 1 590 909 people. New unemployment will be 4,4 + 0,06508 = 4,46508 . 4,46508 * 1 590 909 = 7103535 people. increased unemployment number is thus: 103535 people ? Am i interpreting this right? or do i mix percentage and percantage point? 
June 4th, 2017, 09:06 AM  #2 
Senior Member Joined: May 2016 From: USA Posts: 881 Thanks: 353 
This is a duplicate post that I have answered in the economics forum, but the question seems to me to deserve to be looked at by statisticians as well as economists.


Tags 
regression 
Thread Tools  
Display Modes  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Regression Help  Manuxking  Advanced Statistics  0  February 5th, 2014 10:21 AM 
Linear regression and regression trees  Davuit  Advanced Statistics  0  May 9th, 2013 10:24 AM 
Regression...please help  Ansh Agrawal  Algebra  4  February 14th, 2012 05:27 AM 
Regression help.  kenio8185  Advanced Statistics  2  December 2nd, 2011 06:49 PM 
Regression  maths_123  Algebra  0  November 1st, 2009 03:41 AM 