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st: Elasticity

From   Rita Luk <>
To   "''" <>
Subject   st: Elasticity
Date   Wed, 20 Apr 2005 14:34:37 -0400

Hi Statalist,

Please excuse me that this is not exactly a question about Stata, but I
think professionals here can help.

For a regression equation:  X/Y = a + bZ + cK + error where X, Y, Z and K
are variables. Given estimates of the coefficients b and c, what is the
formula for the marginal effect of Z on X ie. dX/dZ, and the formula for the
elasticity of X with respect to Z.

I know how to get the elasticity when the Dependent is a variable in level,
but do not know how when the dependent is a ratio.

Your information on the formula or reference materials are much appreciated.

Thank you very much for your precious time.

Rita Luk
Research Officer
Ontario Tobacco Research Unit
Toronto, Ontario
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