I'm looking at a multiple regression model using natural logarithms for the x's. I understand what the betas mean (they are the elasticities), except for beta-1 (b1-the intercept). Here's the equation:
yi=b1+b2*ln(xi2)+b3*ln(xi3)+...+b7*ln(xi7)+ei
I just need to know what b1 means.
2006-11-07 17:26:24 · 3 answers · asked by Becca 2 in Social Science ➔ Economics
I meant that all the b's except b1 are elasticities....Which would be why I'm asking if anyone can figure this out...
2006-11-07 18:12:24 · update #1
I have the data and I know the value of b1, so that's not the issue. The ln(xi) are needed because I need to know the % changes of yi in terms of the % changes of xi. Logically b1 would be the % of production (yi) if all the ln(xi)=0 (or all other b's=0), but that doesn't make any sense, so it can't be right. I need to know what b1 means, not its value.
2006-11-07 19:15:08 · update #2
linear regression with logs is like assuming that
10^y=10^b1(x^b2)(x^b3)(......
If there is no reason to have a constant term you can force b1=0 so 10^b1=1
2006-11-07 18:57:00 · answer #1 · answered by meg 7 · 1⤊ 0⤋
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2016-10-15 12:35:54 · answer #2 · answered by ? 4 · 0⤊ 0⤋
beta 1, the first elasticitie(sp?) This is a guess based on logic.
2006-11-07 17:34:00 · answer #3 · answered by Norton N 5 · 0⤊ 0⤋