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In the quest for economic significance : Assessing variable importance through mean value decomposition

Holgersson, H. E T; Norman, T. and Tavassoli, S. LU (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. © 2014 Taylor & Francis.

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author
publishing date
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
2017-01-01 08:26:25
@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. © 2014 Taylor &amp; Francis.</p>},
  author       = {Holgersson, H. E T and Norman, T. and Tavassoli, S.},
  issn         = {1350-4851},
  keyword      = {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},
  volume       = {21},
  year         = {2014},
}