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In the quest for economic significance: assessing variable importance through mean value decomposition
Högskolan i Jönköping, Internationella Handelshögskolan, IHH, Economics, Finance and Statistics.
Högskolan i Jönköping, Internationella Handelshögskolan, IHH, Economics, Finance and Statistics.
Blekinge Institute of Technology.
2013 (engelsk)Rapport (Fagfellevurdert)
Abstract [en]

Economic significance is frequently assessed through statistical hypothesis testing. This habitual use is, however, usually not matching with the implicit economical questions being addressed. In this paper we propose using mean value decomposition to assess economic significance. Unlike most previously suggested methods the proposed one is intuitive and simple to conduct. The technique is demonstrated and contrasted with hypothesis tests by an empirical example involving the income of Mexican children, which shows that the two inference approaches provide different and supplementary pieces of information.

sted, utgiver, år, opplag, sider
2013. , s. 16
Serie
CESIS Working Paper Series in Economics and Institutions of Innovation ; 326
Emneord [en]
conditioning, economic significance, regression analysis, mean value decomposition, goodness-of-fit
HSV kategori
Identifikatorer
URN: urn:nbn:se:hj:diva-23166OAI: oai:DiVA.org:hj-23166DiVA, id: diva2:689719
Tilgjengelig fra: 2014-01-21 Laget: 2014-01-21 Sist oppdatert: 2014-03-05bibliografisk kontrollert

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