Economic Data Analysis

How to understand output of regression result

(5) Sample Table of Estimation Result
Note: *, **, and *** indicate 10%, 5%, and 1%
significance levels, respectively.
(1) Estimated coefficients and associated standard errors
(2) Hypothesis test: E
0
: [

= u
With large t-statistic (small Probability-value), the hypothesis is rejected.
When x may NOT affect y When x affects y
t-statistic Small (in the absolute value) Large (in the absolute value)
Prob Larger than 0.01, 0.05, or 0.1 Smaller than 0.01, 0.05, or 0.1
Statistical
statement
The coefficient is not statistically
significant at the 1 (5, 10)% level.
The coefficient is positive (negative) and
statistically significant at the 1 (5, 10)%
level.
Meaning Cannot reject that [

is zero. Can reject that [

is zero.

(3) R Squared (R
2
, coefficient of determination):
The fraction of the sample variation in y that is explained by x
Adjusted R Squared: R
2
with adjusting by number of explanatory variables
(4) Hypothesis test (F-test) with p-value: E
0
: [
1
= [
2
= = [
k
= u (All coefficients except for
constant terms equal to zero.)

(5) Result table in your paper should be organized for the convenience of readers.
Do not copy and paste computer output. Pick up values that you need, and create a table by yourself.
Use variable description rather than variable names.
The number of digits should be limited, rather than just copying full values.
All notations and other conditions should be explained in table notes so that readers understand the
estimation result without looking for explanations in the paper.
Dependent variable: GDP Growth rate
Coeff. (s.e.)
Constant -2.957 (1.770) *
GDP per capita (log) -0.072 (0.182)
Investment rate (%) 0.260 (0.038) ***
Export / GDP 0.011 (0.011)
Export growth (%) 0.186 (0.029) ***
Adj. R2 0.392
Sample size 142