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I am struggling interpreting the coefficient of a variable which is expressed as a proportion in a probit model. As it currently stands , I am interpreting the average partial effects of this variable (0.14) as a one unit increase in share of debt raises the probability of innovation by 14 percentage points.

However, if I multiply this variable by 100 and turn it into a percentage, the average average partial effect is (.0014556 ), does it mean that a 1 percentage point change in the percentage of debt increases the probability of innovation by 0.0014556.

Questions : a) are my interpretations correct

b) Instead of saying a one percentage change increases can I write in terms of a 10 percentage point increase and if so what should I do .

Regards, naveed

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if 0.14 is your coefficient, then you should exponentiate it [exp(0.14) = 1.15], which says that one unit increase of whatever your original variable, you will get 0.15 (1.15-1=0.15) or 15% increase in your response.

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