Econometrics

Elasticities in estimated linear models
Ever wondered how your estimation of a linear function relates to the elasticities of the estimated model? I always seem to forget, especially if I have taken the logarithm on one or both sides of the equation. Here are the four cases you can have:
Linear:The function has the following form (if you have more variables on the right hand side, this doesn’t change the story):[math]Y=a + bX[/math]The elasticity is given by:[math]\epsilon= \frac{dY}{dX}\frac{X}{Y}=b\frac{X}{Y} [/math]and the coefficient b is the change in Y from a unit increase in X.Loglinear
Categories
Recent Posts
 Automatic line breaks in LaTeX tables 63 views
 Tables with footnotes in LaTeX 31 views
 Elasticities in estimated linear models 21 views
 Producing standalone figures with TikZ in LaTeX 13 views
 ExcelAddin for converting Excel tables to LaTeX tables 9 views
 Showing a beamer presentation with preview of next slide 7 views
 Starting your Jupyter Notebook with a doubleclick 6 views
 Gams code in LaTeX documents 6 views
 How to generate nice nomenclatures in LaTeX 5 views
 Using OrgMode for Project Management 4 views