For some reason, I am a bit confused about interpreting regression coefficients. Some of my regression independent variables are in percentages (expressed as decimal values) and some in integers. The dependent variable is price expressed in USD.

How do I interpret coefficient of a percentage variable?

Is it, keeping all other variables unchanged, one percent change in the percent variable will create beta US change in the price?

  • 4
    $\begingroup$ "One percent point" is better. 4 to 5% is a one percent point increase, but 25% increase. It also matters if you use percent like 20 standing for 20% in your data or .20. This difference can affect if you will be using just beta or need to multiply. $\endgroup$ Mar 1, 2017 at 22:09

1 Answer 1


Keeping all other variables unchanged, a one percentage point change (from .04 to .05 in your data) in the percent variable will create beta/100 USD change in the price.


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