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From |
Dorothy Bridges <dbstata@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: AW: AW: Creating a variable taking the value of elasticity |

Date |
Tue, 8 Sep 2009 11:10:17 -0400 |

Thanks so much, everyone, that answers my question. (And thanks Roger for pointing me to the helpful package). I have one last question: I am trying to understand the "elasticity" of a health indicator with respect to GDP (that is, how does a marginal increase in GDP affect the health indicator?). If I regress ln(healthindicator) on ln(gdp), is the coefficient on ln(gdp) an appropriate way of measuring this elasticity? I realize this is more of an econometrics question than a Stata question, but everyone has been so helpful I thought I'd might as well ask. Thanks again, Dorothy On Tue, Sep 8, 2009 at 10:52 AM, Austin Nichols<austinnichols@gmail.com> wrote: > Dorothy Bridges<dbstata@gmail.com>: > 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<dbstata@gmail.com> 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<maartenbuis@yahoo.co.uk> 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? > > * > * For searches and help try: > * http://www.stata.com/help.cgi?search > * http://www.stata.com/support/statalist/faq > * http://www.ats.ucla.edu/stat/stata/ > * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**Follow-Ups**:**Re: st: AW: AW: Creating a variable taking the value of elasticity***From:*Austin Nichols <austinnichols@gmail.com>

**References**:**Re: st: AW: AW: Creating a variable taking the value of elasticity***From:*Dorothy Bridges <dbstata@gmail.com>

**Re: st: AW: AW: Creating a variable taking the value of elasticity***From:*Maarten buis <maartenbuis@yahoo.co.uk>

**Re: st: AW: AW: Creating a variable taking the value of elasticity***From:*Dorothy Bridges <dbstata@gmail.com>

**Re: st: AW: AW: Creating a variable taking the value of elasticity***From:*Austin Nichols <austinnichols@gmail.com>

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