I would like to ask a question regarding the interpretation of log-log interaction term in the Two-way fixed effect model. I have the following regression model:
y_it = 𝛽_0 + 𝛽2[ln(price_it)*ln(area_it)] + myu_i + phi_t + u_it
here, y is years of schooling (continuous), price is housing price (continuous), and area is house size.
If 𝛽2 is 0.5, then how can I interpret point estimate in the logarithm setting?
For example, 1% change in house price and 1% change in house area at the same time leads to 0.5 more years of schooling?
I am not familiar with the log*log interpretation here and would like to get some help!
Thank you so much in advance for your help!