darribas / darribas/spa_notes

Incorrect interpretation of parameter

Open
#1 0 comments 0 reactions 0 assignees View on GitHub
Dominant language
HTML
Stars
7
Forks
8
PR merge metrics
No merged PRs in 30d

Description

The interpretation of the IMD parameter in the [non-spatial regression](https://github.com/darribas/spa_notes/blob/master/sp_eco.Rmd#non-spatial-regression-a-refresh) 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:

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

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

Contributor guide

No contributing guide indexed for this repository

Assessment

This issue has not been assessed yet.

Get new issues in your inbox

A short digest of beginner-friendly GitHub issues.