I am running a linear multiple regression model, looking at various businesses' change in income due to the COVID-19 lockdowns. So, as DV, I am calculating a ratio of post-pandemic income over pre-pandemic income. I have two questions:
- If one of the predictors has a significant Beta of, let's say, -.01, would it make sense to interpret this as: "a one unit increase in that predictor is associated with a 1 percentage point loss in income?" In other words, should I read it as a 1 percentage point loss or a 1 percent loss?
- Would using a ratio as DV make sense in light of Kronmal 1993? Intuitively speaking, at least, regressing change of income makes a lot of sense to me, but that is a ratio.
Thanks a lot!