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In the Model Ln(Yi)= ?0 + ?1Xi + Ui, the Elasticity

Question 22

Multiple Choice

In the model ln(Yi) = ?0 + ?1Xi + ui, the elasticity of E(Y|X) with respect to X is


A) ?1X
B) ?1
C) β1Xβ0+β1X\frac { \beta _ { 1 } X } { \beta _ { 0 } + \beta _ { 1 } X }
D) Cannot be calculated because the function is non-linear

Correct Answer:

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