Econometrics HT 18

Chapter 20 : Logarithmic regression models

By Lund University

The most important class of non-linear models.

Logarithmic regression models

This section is about logarithmic models, specifically the log-log model, the loglinear model and a model where we only log (some of) the x variables. We show that in the log-log model, the beta parameters will be elasticities.

The log-log model

The log-linear model

Logging an x-variable

Marginal effects an elasticities in the log-log model

Elasticities and percentage change

Log-log model with one explanatory variable

Estimating elasticity

Interpreting parameters in the log-log model

Marginal effects an elasticities in the log-linear model

Log-linear model with one explanatory variable

Interpreting parameters in the log-linear model

Logging an x-variable