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%.
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%.
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
4
Q
STATA:
A
regression of y on x: reg y on x
5
Q
Interpretation of a slope coefficient:
A
One more of x, on average leads ceteris paribus to Beta1 increase in y.