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 soma A.Constant term 1.why we shouldnt suppress it: Pg 209 Highlighted 2. wherefore we shouldnt intrust on estimates of the constant term Pg 210 Highlighted B.Alternative structural forms Elasticity: the per centum change on the dependent inconsistent caused 1% add in the self-reliant variable, holding the new(prenominal) variables in the equation constant. 1.Linear - thoughtlessness functional form a.Why? Because it usually is the simplest form, it is based on the supposal that the slope of the kin between the strong-minded variables and the dependent variable are constant. sky is Constant and Elasticities are not. 2.Double-log form a.When is it becharm? When the elasticities are constant and the slopes are not. Should also be perish only when the logged variables take on positive values. b.interpretation of coefficients as elasticities: The piece of cake of Y with respectfulness to X.

3.Semilog form a.right-hand: Consumptions, b.left-hand: examples of type, Salaries ! c.when take over? 4. polynomial form a.when appropriate? long time Inverted Polynomial form teetotum 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 rich essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay