Published on Development Impact

Weekly links June 29: cash does more good things, interpreting IHS, technical assistance to banks increased credit, and more...

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              The question is then how to interpret the estimated coefficient b. The nice result for us is that “standard logarithmic adjustments for semi-elasticities in arcsinh-linear equations with dummy variables can be used with little error for dependent variables with untransformed means roughly greater than 10.”. That is, for y large enough (he says y>10 as a guideline), then the just like in a log-linear specification, the percent change in y due to treatment changing from 0 to 1 is approximately exp(b) – 1.
Note that Development Impact will be on break next week for the 4th of July. See you back on July 9.


David McKenzie

Lead Economist, Development Research Group, World Bank

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