Chapter 1: check Flashcards

1
Q

log-log model:

A

ln(y)=Beta0+Beta1*ln(x)+u

When x increases by 100%
-> ln(x) increases by 1 unit
-> ln(y) increases by Beta1 units
= y increases by Beta1*100%.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

log-level model:

A

ln(y)=Beta0+Beta1*x+u

When x increases by 1 unit
-> ln(y) increases by Beta1 units
= y increases by Beta1*100%.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

level-log model:

A

y=Beta0+Beta1*ln(x)+u

When x increases by 100%

  • > ln(x) increases by 1
  • > y increases by Beta1 units
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

STATA:

A

regression of y on x: reg y on x

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Interpretation of a slope coefficient:

A

One more of x, on average leads ceteris paribus to Beta1 increase in y.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly