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Abstract:
It is frequent to hear in economic seminars or read in academic papers that an effect is economically significant or economically important. Yet, the economic literature is vague on what economic importance means and how it should be measured. In this paper, I show that existing measures of economic importance are flawed and misused. I derive a new metric that measures, in percentage terms, the contribution of each explanatory variable to deviations in the dependent variable, ceteris paribus. As an illustration, the method is applied to study the determinants of migration and the determinants of fertility.
Publication status:
Published
Peer review status:
Peer reviewed

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Files:
Publisher copy:
10.1111/joes.12330

Authors

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Sub department:
CSAE
Oxford college:
St Antony's College
Role:
Author
ORCID:
0000-0003-3835-9388


Publisher:
Wiley
Journal:
Journal of Economic Surveys More from this journal
Volume:
33
Issue:
5
Pages:
1409-1436
Publication date:
2019-08-06
Acceptance date:
2019-06-12
DOI:
EISSN:
1467-6419
ISSN:
0950-0804


Language:
English
Keywords:
Pubs id:
pubs:1019447
UUID:
uuid:6825dd96-9e4c-4272-a7e4-27953c3cc7bb
Local pid:
pubs:1019447
Source identifiers:
1019447
Deposit date:
2019-06-19
ARK identifier:

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