Study Guide

Study Guide, Econ 6330 I. judicial admission tests A.Ramsey Reset test B.Akaikes Information Criterion C.Schwarz Criterion II. Specification of Functional get A.Constant term 1.why we shouldnt suppress it: Pg 209 Highlighted 2. wherefore we shouldnt affirm on estimates of the constant term Pg 210 Highlighted B.Alternative structural forms Elasticity: the dowery change on the dependent inconsistent caused 1% make up in the autarkical inconstant, holding the new(prenominal) variables in the equation constant. 1.Linear - evasion functional form a.Why? Because it usually is the simplest form, it is based on the self-reliance that the slope of t he kin between the freelancer variables and the dependent variable are constant. sky is Constant and Elasticities are not. 2.Double-log form a.When is it allow? When the elasticities are constant and the slopes are not. Should also be accord only when the logged variables take on positive values. b.interpretation of coefficients as elasticities: The walkover of Y with respectfulness to X.

3.Semilog form a.right-hand: Consumptions, b.left-hand: examples of type, Salaries ! c.when grab? 4. polynomial form a.when appropriate? long time Inverted Polynomial form pinnacle down U, Economies of musical scale U shaped Polynomial form. 5.Inverse form a.when appropriate? When the tinct of a particular independent variable is expected to lift zero as that independent variable approaches infinity. C.How to choose a...If you essential to get a full-of-the-moon essay, order it on our website: OrderCustomPaper.com

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