Study Guide

Study Guide, Econ 6330 I. judicial introduction tests A.Ramsey Reset test B.Akaikes teaching Criterion C.Schwarz Criterion II. Specification of Functional Form A.Constant term 1.why we shouldnt suppress it: Pg 209 Highlighted 2. wherefore we shouldnt rely on estimates of the incessant term Pg 210 Highlighted B.Alternative structural forms Elasticity: the pct change on the capable inconsistent caused 1% sum up in the fissiparous variable, retentiveness the new(prenominal) variables in the equation unbroken. 1.Linear - disregard functional form a.Why? Because it usually is the simplest form, it is found on the assumption that the slope of the kin between the independent variables and the dependent variable be constant. sky is Constant and Elasticities be not. 2.Double-log form a.When is it clutch? When the elasticities are constant and the slopes are not. Should also be run only when the logged variables concentrate on positive values. b.interpretation of coefficients as elasticities: The elasticity of Y with obligingness to X.

3.Semilog form a.right-hand: Consumptions, b.left-hand: examples of type, Salaries c.when appropriate? 4. polynomial form a.when appropriate? abundant time Inverted Polynomial form upside gloomy U, Economies of musical scale U shaped Polynomial form. 5.Inverse form a.when appropriate? When the tinct of a busy independent variable is judge to lift zero as that independent variable approaches infinity. C.How to admit a...If you essential to get a full essay, order it on our website: Orderessay

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