# Interpretation of an output of Random effect and panel GMM model

#### Vikingalex

##### New Member
Hello everyone,

I examine paperss of the effects of environmental taxes on innovation. In previous problems, there were no interpretation problems. Now I have found a paper where the output does not match the authors' interpretation, so I am quite confused.

This is the regression model:

All variables are logarithmic transformations.

Now the output table:

And this is how the author interpret the output from above:

As I understand the table, the interpretation should be as follow:

1. In the random effect model is 1% increase of the variable ENVTAX (envrionmental taxes as % of GDP) will cause 0,5394% increase the dependent variable, in this case 0,5394% increase of the varaible PATENT.
2. In the GMM model is 1% increase of the variable ENVTAX will cause 0,25129% increase the depend variable, in this case 0,25129% increase of the variable PATENT
In the text from paper the author says that 1% increase will cause 0,62 increase of the dependend variable.

WHERE DOES 0,62% COME FROM??? I DON'T UNDERSTAND IT.