Hi,

I am struggling with the interpretation of my coefficients. The regression equation that I am estimating is as follows:

📷

where 📷 is a latent variable whose value determines whether or not a good will be imported in year t and takes the value of 1 if country i imports product category k from trading partner j in year t; 📷 is the change in the natural log of the tariff rate imposed by country i on good k imported from country j, between t and t-1.

I estimate this equation by Linear Probability Method.

How do I interpret the coefficient 📷 ?

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