Interpreting Coefficients in 2SLS Model
I am currently working on a 2SLS model where I instrumented the logarithm of per capita transfers with the unemployment rate from each country that the transfers originate from (also taking logarithms—this is the first stage of my 2SLS). In the second stage, I looked at how these instrumented transfers (independent variable) affect per capita employment -not in logarithms- (dependent variable). The resulting coefficient was 0.05.