Log-log regressions
A)allow the estimated marginal effect to differ at different values of the dependent variable.
B)estimate the marginal effect as an elasticity.
C)estimate the marginal effect in terms of the percent change in the independent variable.
D)estimate the marginal effect in terms of the percent change in the dependent variable.

Question

Quizplus · Accepted Answer

Log-log regressions estimate the marginal effect as an elasticity, which shows the proportional change in the dependent variable for a given proportional change in the independent variable. This is particularly useful when analyzing variables that have nonlinear relationships.

Log-Log Regressions