Log and Linear Regressions
Budget: $10 – $30 USD
Estimate two different functional forms corresponding to water demand that do not include any interaction variables. (E.g. linear versus log‐log). For both specifications, report (in tabular form) coefficient estimates for each of the variables included in your models.
For each of the specifications estimate one version that allows the effect of “x” on y to vary, and one that does not.
a. Indicate in a drawing the difference that is implied across each of the specifications
b. For both specifications, report (in tabular form) coefficient estimates for each of the
variables included in your models.
What are your best estimates of:
a. The price elasticity of demand for water
b. The effect of restrictions on demand for water
c. The difference between summer and winter demand for water
For each of the specifications estimate one version that allows the effect of “x” on y to vary, and one that does not.
a. Indicate in a drawing the difference that is implied across each of the specifications
b. For both specifications, report (in tabular form) coefficient estimates for each of the
variables included in your models.
What are your best estimates of:
a. The price elasticity of demand for water
b. The effect of restrictions on demand for water
c. The difference between summer and winter demand for water