Dorothy Bridges<[email protected]>:
The linear model and the log-log model make very different assumptions
about the data-generating process, so you should not expect to get the
same estimates from them. -mfx- after a linear model in particular
will give approximate estimates that are very questionable--note that
if the true model is
y=Xb+e
then the elasticity of y with respect to x (a variable, or column of
X) will vary as x varies.
On Tue, Sep 8, 2009 at 10:32 AM, Dorothy Bridges<[email protected]> wrote:
I still
> don't see, then, how mfx, eyex gives me a value different than the
> coefficient on lnx in regress lny lnx. Thanks again for all your
> thoughts.
>
>
> On Tue, Sep 8, 2009 at 10:20 AM, Maarten buis<[email protected]> wrote:
>> --- On Tue, 8/9/09, Dorothy Bridges wrote:
>>> But what I don't understand is: the second method
>>> (using mfx, eyex) gives me a different value than
>>> the first method (storing the coefficient on x
>>> from *regress lny lnx*). Why?
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