Cheat!Sheet:!Interpreting!Regressions!(Page!1!of!

3)
Type Transformation X/Variable Y/Variable Equation Interpretation/of/ Intuition/or/Purpose

OLS None Continuous Continuous Y/=/+/x/+/ :!the/effect/of/1/unit//in/x/on//in/y /Basic/regression/to/estimate/relationships

OLS LogILinear Continuous Continuous ln(Y)/=//+/x/+/ :!the/effect/of/1/unit//in/x/on/%/in/y /Easier/interpretation,/nonIlinear

OLS LinearILog Continuous Continuous Y/=//+/ln(x)/+/ :!the/effect/of/1/%//in/x/on//y /Easier/interpretation,/nonIlinear

OLS LogILog Continuous Continuous ln(Y)/=//+/ln(x)/+/ :/the/effect/of/1/%//in/x/on/%/in/y /Interpret/as/an/elasticity,/nonIlinear

Dummy/ :/the/effect/of/1/unit//in/x/on/probability/
OLS None Continuous Y/=/+/x/+//////////////////////////// /Think/of/Y/as/switched/on/and/off
(Y/=/0/or/1) /////that/Y/occurs/(a/%)

Dummy/////////////
OLS None Continuous Y/=/+/x/+///////////////////////////
:!the/effect/of/x/being/equal/to/1/on//in/y /Think/of/X/as/switched/on/and/off
(X/=/0/or/1)

Dummy/////////////Dummy :/the/effect/of/x/being/equal/to/1/on/probability/
OLS None Y/=/+/x/+///////////////////////// /Think/of/X/and/Y/as/switched/on/and/off
(X/=/0/or/1) (Y/=/0/or/1) /////that/Y/occurs/(a/%)

Y/=/+/Z/+//////////////////////////////////////////////////////
Continuous/or/ Continuous/
2SLS Any where/Corr(Z,/X)>0//////////////////////////////////////////////
:!the/causal&effect/of/1/unit//in/x/on//in/y /Causal/interpretation/of/our//coefficient
Dummy or/Dummy
and/Corr(Z,/)/=/0/

General!Notes Legend:
!(1)!With/categorical/values,/often/we/create/dummy/variables/(0/1)./ X/I/independent/variable /I/change OLS/I/ordinary/least/squares
///////This/makes/it/easier/to/interpret/coefficients. Y/I/dependent/variable ln/I/natural/log 2SLS/I/two/stage/least/squares
!(2)/Many/of/the/concepts/apply/across/types. /I/slope log/I/logarythm MLE/I/maximum/likelihood/estimator
///////(i.e./how/to/interpret/a/coefficent/when/we/have/dummy/Y/for/interaction). /I/intercept lin/I/linear
!(3)/This/table/is/meant/to/be/compact,/and/therefore/does/not/include/all/possible/iterations. /I/error
 Cheat!Sheet:!Interpreting!Regressions!(Page!2!of!3)!
Type Transformation X/Variable Y/Variable Equation Interpretation/of/ Intuition/or/Purpose
1:!the/effect/of/a/1/unit//in/x1/on//in/y,/
//////controlling/for/the/effect/of/x2 /Control/for/variables
Any Multivariate Continuous Continuous Y/=/+/1x1/+/2x2/+/
/Incorporate/effect/of/multiple/variables
2:/the/effect/of/a/1/unit//in/x2/on//in/y,/
//////controlling/for/the/effect/of/x1

Multivariate/with/Interaction:
1!(main/effect):/the/effect/of/x1/independent/
X1/Dummy /////of/the/effect/of/x2 /A/way/of/quantifying/simultaneous/
X2/Dummy 2!(main/effect):/the/effect/of/x2/independent/ ///relationships
/Interaction/allows/for/effect/of/one/
/////of/the/effect/of/x1
OorO ///variable/to/vary/depending/on/level/of/
3!(interaction):/the/additional/marginal/effect/of/x1/or/x2/ ///another/variable
depending/on/the/level/of/the/other/interacted/variable
Multivariate/ X1/Continuous/ ////////
Any Continuous Y/=/+/1x1/+/2x2/+/3x1*x2/+/
with/Interacton X2/Dummy
X1/Dummy/and/X2/Dummy: X1/Continuous/&/X2/Dummy: X1/Continuous/and/X2/Continuous:

OorO /Effect/of/x1=1/is/1/if/x2=0
/Effect/of/x1=1/is/(1+3)/if/x2=1
X1/Continuous
/Effect/of/x2=1/is/2/if/x1=0
X2/Continuous
/Effect/of/x2=1/is/(2+3)/if/x1=1
/Effect/of/x1/is/1/if/x2=0
/Effect/of/x1/is/(1+3*x2)
/Effect/of/x1/is/(1+3)/if/x2=1
/Effect/of/x2/is/(1+3*x2)
/Effect/of/x2=1/is/(2+3)

General!Notes Legend:
!(1)!With/categorical/values,/often/we/create/dummy/variables/(0/1)./ X/O/independent/variable /O/change OLS/O/ordinary/least/squares
///////This/makes/it/easier/to/interpret/coefficients. Y/O/dependent/variable ln/O/natural/log 2SLS/O/two/stage/least/squares
!(2)/Many/of/the/concepts/apply/across/types. /O/slope log/O/logarythm MLE/O/maximum/likelihood/estimator
///////(i.e./how/to/interpret/a/coefficent/when/we/have/dummy/Y/for/interaction). /O/intercept lin/O/linear
!(3)/This/table/is/meant/to/be/compact,/and/therefore/does/not/include/all/possible/iterations. /O/error
 Cheat!Sheet:!Interpreting!Regressions!(Page!3!of!3)
Type Transformation X/Variable Y/Variable Equation Interpretation/of/ Intuition/or/Purpose

/Probit/is/short/for/probability*unit
*Follows/standard/normal/distribution
Dummy N
L( ) = p(Yi ) = ( Xi )Yi ( Xi )1Yi :!the/effect/of/1/unit//in/x/on/the/zWscore/ /Thinner/tails
MLE Probit Continuous
(Y/=/0/or/1) i=1
/////of/y/under/a/normal/distribution /Approaches/axes/more/quickly
/Higher/value/of//means/event/is/more/
///likely

/Follows/logistic/distribution
/Fatter/tails
Dummy :!the/effect/of/1/unit//in/x/on/the/zWscore/
Yi 1Yi
N "
exp( Xi ) % " exp( Xi ) %
MLE Logit Continuous L( ) = $ ' $ ' /Approaches/axes/less/quickly
(Y/=/0/or/1) i=1 # 1+ exp( X i ) & # 1+ exp( X i ) & /////of/y/under/a/logistic/distribution
"Higher/value/of//means/event/is/more/
//likely////""""

Y/=/+/Z/+//////////////////////////////////////////////////////
Continuous/or/ Continuous/
2SLS Any where/Corr(Z,/X)>0//////////////////////////////////////////////
:!the/causal"effect/of/1/unit//in/x/on//in/y /Causal/interpretation/of/our//coefficient
Dummy or/Dummy
and/Corr(Z,/)/=/0/

General!Notes Legend:
!(1)!With/categorical/values,/often/we/create/dummy/variables/(0/1)./ X/W/independent/variable /W/change OLS/W/ordinary/least/squares
///////This/makes/it/easier/to/interpret/coefficients. Y/W/dependent/variable ln/W/natural/log 2SLS/W/two/stage/least/squares
!(2)/Many/of/the/concepts/apply/across/types. /W/slope log/W/logarythm MLE/W/maximum/likelihood/estimator
///////(i.e./how/to/interpret/a/coefficent/when/we/have/dummy/Y/for/interaction). /W/intercept lin/W/linear
!(3)/This/table/is/meant/to/be/compact,/and/therefore/does/not/include/all/possible/iterations. /W/error