Month: May 2019

Marginal Effects of Linear Models with Data Transformations

We use regression analysis to understand the relationships, patterns, and causalities in data. Often we are interested in understanding the impacts that changes in the dependent variables have on our outcome of interest. However, not all models provide such straightforward interpretations. Coefficients in more complex models may not always provide direct insights into the relationships we are interested in. In this blog, we look more closely at the interpretation of marginal effects in three types of models:
  • Purely linear models.
  • Models with transformations in independent variables.
  • Models with transformations of dependent variables.

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