ECONOMETRICS I
CHAPTER 6: EXTENSIONS OF THE
TWO-VARIABLE LINEAR REGRESSION
MODEL
Textbook: Damodar N. Gujarati (2004) Basic Econometrics,
4th edition, The McGraw-Hill Companies
6.1 REGRESSION THROUGH THE ORIGIN
6.1 REGRESSION THROUGH THE ORIGIN
6.1 REGRESSION THROUGH THE ORIGIN
6.1 REGRESSION THROUGH THE ORIGIN
6.1 REGRESSION THROUGH THE ORIGIN
6.1 REGRESSION THROUGH THE ORIGIN
6.1 REGRESSION THROUGH THE ORIGIN
• Homework:
Y
14
22
24
60
5
X
4
6
7
10
3
• Calculate ,
,
and raw r2, and
draw the estimated regression line.
6.2 SCALING AND UNITS OF MEASUREMENT
•
To grasp the ideas developed in this section, consider the data given in Table 6.2,
which refers to U.S. gross private domestic investment (GPDI) and gross domestic
product (GDP), in billions as well as millions of (chained) 1992 dollars.
6.2 SCALING AND UNITS OF MEASUREMENT
6.2 SCALING AND UNITS OF MEASUREMENT
6.2 SCALING AND UNITS OF MEASUREMENT
6.2 SCALING AND UNITS OF MEASUREMENT
6.2 SCALING AND UNITS OF MEASUREMENT
6.4 FUNCTIONAL FORMS OF
REGRESSION MODELS
6.5 HOW TO MEASURE ELASTICITY:
THE LOG-LINEAR MODEL
6.5 HOW TO MEASURE ELASTICITY:
THE LOG-LINEAR MODEL
6.5 HOW TO MEASURE ELASTICITY:
THE LOG-LINEAR MODEL
6.6 SEMILOG MODELS
LOG–LIN MODEL
• Compound interest formula:
LOG–LIN MODEL
LIN-LOG MODEL
LIN-LOG MODEL
6.7 RECIPROCAL MODELS
6.7 RECIPROCAL MODELS
6.7 RECIPROCAL MODELS
THE SLOPE AND ELASTICITY COEFFICIENTS OF
THE VARIOUS MODELS