Show that for the following regression model
Yt = where t is a time trend,which takes on the values 1,2,…,T,β1 represents the instantaneous ("continuous compounding")growth rate.Show how this rate is related to the proportionate rate of growth,which is calculated from the relationship
Yt = Y0 × (1 + g)t
when time is measured in discrete intervals.

Question

Show that for the following regression model
Yt =  where t is a time trend,which takes on the values 1,2,…,T,β1 represents the instantaneous ("continuous compounding")growth rate.Show how this rate is related to the proportionate rate of growth,which is calculated from the relationship
Yt = Y0 × (1 + g)t
when time is measured in discrete intervals.

Quizplus · Accepted Answer

The Answer of Show that for the following regression model
Yt =  where t is a time trend,which takes on the values 1,2,…,T,β1 represents the instantaneous ("continuous compounding")growth rate.Show how this rate is related to the proportionate rate of growth,which is calculated from the relationship
Yt = Y0 × (1 + g)t
when time is measured in discrete intervals.

Show That for the Following Regression Model