2
$\begingroup$

I fit a Poisson regression model where I used $x$ and $x^2$ to predict $y$.

Let's say the coefficients of $x$ and $x^2$ are $\beta_1 = 0.8$ and $\beta_2 = -0.1$.

Exponentiating the coefficient (${\beta_1}$) gives us the multiplicative factor by which the mean count changes when we increase $x$ by one unit: $e^{\beta_1}$ = 2.23. So increasing x by one unit changes the mean of $y$ by a factor of 2.23. This factor is constant over all $x$.

According to this answer, "$e^{\beta_2}$ would be called a ratio of ratio of rates comparing groups differing by 1 unit differing by 1 unit of $X$."

I tried this out with a toy example below with the parameters from above (${\beta_1} = 0.8$ and ${\beta_2} = -0.1$) and indeed the ratio is not constant because of the nonlinear term but the ratio of the ratio is constant. But the ratio of ratios is not equal to $e^{\beta_2}$ but to $e^{(2\beta_2)}$. I think this relates to this part of the referenced answer above "But if you do a difference in differences for $(E[Y|X=x+2] - E[Y|X=x+1]) - (E[Y|X=x+1] - E[Y|X=x]) = 2\beta_2$. So basically the $\beta_1$ is the tangent slope of the quadratic curve at the origin, and $\beta_2$ is a quadratic slope."

With all this, I am not quite sure how to interpret a one-unit change of $x$ on the mean of $y$. Would it be correct to say that for each unit increase in $x$, the linear term ${\beta_1}$ changes the mean of $y$ by a factor of 2.23 while the nonlinear term ${\beta_2}$ leads to a decrease of this factor by $e^{(2\beta_2)}$ = 0.8187 for each increase in $x$. I don't think this is correct because the effect is dependent on the value of $x$.

Is there a way to express the effect on a one-unit increase in $x$ on the mean of $y$ that is independent of $y$ or is this not possible?

And if this is not possible, what is the correct way to specify a change from let's say $x = 1$ to $x = 2$ for this toy example? "Increasing $x$ from 1 to 2 increases the mean of $y$ by a factor of 1.6487"?

x predicted y ratio ratio of ratio
0 1
1 2.01375271 2.01375271
2 3.32011692 1.64872127 0.81873075
3 4.48168907 1.34985881 0.81873075
4 4.95303242 1.10517092 0.81873075
5 4.48168907 0.90483742 0.81873075
$\endgroup$
1

1 Answer 1

2
$\begingroup$

You can assemble two useful pieces of information to arrive at the interpretation of the linear and quadratic term in a Poisson GLM:

  1. As you already stated, $\exp(\beta)$ for any first-order coefficient $\beta$ in a Poisson model can be interpreted as a relative rate of the Poisson process comparing groups differing by 1 in the corresponding variable being modeled.

  2. In a linear model with identity link, like OLS, the interpretation of the quadratic term $\beta_2$ is readily seen as the rate of change of the effect, that is for every unit difference in $X$ the slope relating $X$ and $Y$ changes by a factor of $\beta_2$. Similarly, the linear term $\beta_1$ can be seen as the instantaneous rate of change relating $X$ and $Y$ when $X=0$. That is to say, since the shape of the predicted trend between $X$ and $Y$ is quadratic, $\beta_1$ is the slope of the tangent curve at $X=0$.

So, in your model with $\beta_1 = 0.8$ and $\beta_2 = -0.1$, comparing groups differing by 1 unit "near 0" (ignoring the issue of prediction at the means), has a relative rate ratio of 2.22, and groups differing by 1 unit have a ratio of relative rate ratios of 0.91

$\endgroup$
4
  • $\begingroup$ Thanks! But groups differing by 1 unit have a ratio of relative ratios of 0.81 ($e^{(2\beta_2)}$) and not 0.91 ($e^{(\beta_2)}$), right? Since $e^{(2\beta_2)}$ is the second derivative of the relative rate of change with respect to $x$? $\endgroup$
    – Ahorn
    Commented May 3, 2023 at 7:14
  • $\begingroup$ Thanks for your patience! I did, and my result was $e^{2\beta_2}$... I also double-checked with WolframAlpha. $e^{2\beta_2}$ is also consistent with the ratio of ratios I calculated in the table for the toy example I provided. What am I missing? $\endgroup$
    – Ahorn
    Commented May 4, 2023 at 19:04
  • $\begingroup$ @Ahorn you're not showing any work. $\endgroup$
    – AdamO
    Commented May 15, 2023 at 0:28
  • $\begingroup$ I also get $2\beta_2$, Showing some work, using $a,b$ for $\beta_1, \beta_2$ for simplicity in reading and typing: the crucial step is resolving: $ax +bx^2 + a(x+2) + b(x+2)^2 - 2\cdot (a(x+1) + b(x+1)^2)$, Here everytihng cancels except you get $4b$ from $b(x+2)^2$ and only $2b$ from $2\cdot (b(x+1)^2)$ $\endgroup$ Commented May 15, 2023 at 8:56

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.