ECON 307

# ECON 307 - Reading 2 Gujarati Chapter 9 When using...

This preview shows page 1. Sign up to view the full content.

1Reading 2 Gujarati Chapter 9 When using log-linear or log-log models the elasticity coefficient is constant but the slope coefficient is variable. The LIV models however have a constant slope and the elasticity coefficient is variable. There are five major types of nonlinear-in-variable but linear -in-parameter models. They are: log-linear, log-lin, lin-log, reciprocal model, and polynominal models. We can combine features of these models to come up with a multiple regression model that has a dependent variable in log form and some of the X variables in log for, with some in linear form. Reading 3 Gujarati Chapter 14 The autocorrelations can be biased as with variances and errors. They can be unbiased when used with OLS estimators although they are not efficient. This means that standard t and z tests can be misleading at a large scale. By using the runs test, plotting of residuals and the Durbin-Watson d test we can determine if there is autocorrelation. Once it has been found it is important to transform the model so that no autocorrelation is found.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern