I have the following model: ln(y) = b0 + B1 X1 + B2 ln(X2) + B3 X3
My X1 is a dummy that can take the values 0, 1 and 2.
The coefficient for the dummy 1 is -0.500.
My question is how do I interpret this? Does it mean that Y will be reduced by approximately 50% by changing the dummy variable to 1 instead of 0? And how can I calculate the exact effect on Y and not just an approximation?
All the best,