In the quest for economic significance : Assessing variable importance through mean value decomposition
(2014) In Applied Economics Letters 21(8). p.545-549- Abstract
Economic significance is frequently assessed through statistical hypothesis testing, which however, does not always correspond to the implicit economical questions being addressed. In this article 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.
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- author
- Holgersson, H. E T ; Norman, T. and Tavassoli, S. LU
- publishing date
- 2014
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- conditioning, economic significance, goodness-of-fit, mean value decomposition, regression analysis
- in
- Applied Economics Letters
- volume
- 21
- issue
- 8
- pages
- 5 pages
- publisher
- Routledge
- external identifiers
-
- scopus:84895766784
- ISSN
- 1350-4851
- DOI
- 10.1080/13504851.2013.872757
- language
- English
- LU publication?
- no
- id
- ac3528ae-10b3-4f3c-a829-ac00fca0ef04
- date added to LUP
- 2016-05-18 21:56:45
- date last changed
- 2024-05-04 00:49:55
@article{ac3528ae-10b3-4f3c-a829-ac00fca0ef04, abstract = {{<p>Economic significance is frequently assessed through statistical hypothesis testing, which however, does not always correspond to the implicit economical questions being addressed. In this article 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.</p>}}, author = {{Holgersson, H. E T and Norman, T. and Tavassoli, S.}}, issn = {{1350-4851}}, keywords = {{conditioning; economic significance; goodness-of-fit; mean value decomposition; regression analysis}}, language = {{eng}}, number = {{8}}, pages = {{545--549}}, publisher = {{Routledge}}, series = {{Applied Economics Letters}}, title = {{In the quest for economic significance : Assessing variable importance through mean value decomposition}}, url = {{http://dx.doi.org/10.1080/13504851.2013.872757}}, doi = {{10.1080/13504851.2013.872757}}, volume = {{21}}, year = {{2014}}, }