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logib (version 0.2.0)

get_kennedy_estimator: Kennedy Estimator

Description

Computes the consistent and almost unbiased estimator for dummy variables in semi-logarithmic regressions proposed by Kennedy, P.E. (1981). Estimation with correctly interpreted dummy variables in semi-logarithmic equations. American Economic Review, 71, 801.

Usage

get_kennedy_estimator(coefficient, variance)

Value

a numeric value representing the so-called "Kennedy estimator"

Arguments

coefficient

numeric value of the estimated coefficient for a dummy variable in a semi-logarithmic regression

variance

numeric value of the variance of this estimated coefficient

Details

Given a semi-logarithmic regression with a dummy variable and its estimated coefficient c with a variance v, the consistent and almost unbiased estimator proposed by Kennedy is computed as k = exp(c) / exp(v / 2) - 1