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 📷 ?