1 / 6

Econometrics data transformation

Econometrics I Summer 2011/2012 Course Guarantor :  prof. Ing. Zlata Sojková, CSc ., Lecturer : Ing. Martina Hanová, PhD. . Econometrics data transformation. Linearity: The true relationship between the mean of the response variable E(Y) and the

jaimie
Télécharger la présentation

Econometrics data transformation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Econometrics I Summer 2011/2012 Course Guarantor:  prof. Ing. Zlata Sojková, CSc., Lecturer: Ing. Martina Hanová, PhD. Econometricsdata transformation

  2. Linearity: The true relationship between the mean of the response variable E(Y) and the explanatory variables X1, ... Xn is a straight line. Assumption of Ordinary Least Squares

  3. Cobb–Douglas production function • Y = total production (the monetary value of all goods produced in a year) • L = labor input • K = capital input • A = total factor productivity • α and β – output elasticities Thelog-logtransformation

  4. Log – log model

  5. B1 and B2 - elasticities of labor and capital. These values are constants determined by available technology. • Elasticity - percentage change in Y for a given (small) percentage change in X ELASTICITY

  6. Log – Lin model Lin – Log model to measurethegrowth rate - Log-Lin model Semi-log transformation

More Related