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Incorrect interpretation of parameter #1

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darribas opened this issue May 15, 2017 · 0 comments

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darribas commented May 15, 2017

The interpretation of the IMD parameter in the non-spatial regression section is incorrect. Where it reads:

a unit increase in the degree of deprivation is associated with a 0.2% decrease in the price of a house

should read:

a unit increase in the degree of deprivation is associated with a 25% decrease in the price of a house

This comes from the fact it is a log-linear functional form that can be interpreted, following Gelman & Hill (2006), as:

\beta = 0.2456446 \rightarrow exp(\beta) = 1.28

which implies a 28% increase in the non-log price variable we have as dependent.

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