Dear R users,
I have estimated a spatial lag model using the "spdep" package. I
understand that to interpret the magnitude of coefficients correctly, I
have to use impact() to calculate the direct and indirect impacts.
Here are the estimation results for a variable X, which is statistically
significant in the model:
Coefficient: 0.104
Direct impact: 0.105
Indirect impact: 0.02
Total impact: 0.107
What I want to know through the model is how the change in X impacts the
dependent variable Y. Based on the results shown above, is this the
correct way to interpret the impact of X on Y: "The average total impact of
a one-unit increase in X on Y is about 0.107. In other words, a one-unit
increase in X is associated with a 0.107 unit increase in Y."
Thanks!
Gary
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