# Interpreting Linear Model Coefficients with Lagged Variables

Let's say I have a data set which looks like below and I'm running a linear model to predict income on two predictors.

date    date-1    income   region    age
mar       apr      50        2        55
apr       may      10        3        40
may       jun      35        1        35
....

Income = B0 + B1(Region) + B2(Age)


Let's say that I get the following coefficients from the model. How would I interpret such results.

             Est
Intercept    130
Region       0.05
Age          0.10


So with a one month lag, how would I go about interpreting this model. What if it were a two month lag?

• Please write the regression specification using mathematical notation and not computer language -a lot is missing, for example it is not clear the lags of what variable(s) are included in the regression. So: mathematical notation. Also you must specify the units in which each variable (dependent and regressors) is measured. – Alecos Papadopoulos Sep 27 '13 at 19:45