Finding Correct Elasticities in Log-Linear and Exponential Models Allowing Heteroskedasticity
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Lee, M.-J. | - |
dc.date.accessioned | 2021-12-02T05:42:06Z | - |
dc.date.available | 2021-12-02T05:42:06Z | - |
dc.date.created | 2021-08-31 | - |
dc.date.issued | 2021-06 | - |
dc.identifier.issn | 1081-1826 | - |
dc.identifier.uri | https://scholar.korea.ac.kr/handle/2021.sw.korea/128812 | - |
dc.description.abstract | Log-linear models are popular in practice because the slope of a log-transformed regressor is believed to give an unit-free elasticity. This widely held belief is, however, not true if the model error term has a heteroskedasticity function that depends on the regressor. This paper examines various mean - and quantile-based elasticities (mean of elasticity, elasticity of conditional mean, quantile of elasticity, and elasticity of conditional quantile) to show under what conditions these are equal to the slope of a log-transformed regressor. A particular attention is given to the 'elasticity of conditional mean (i.e., regression function)', which is what most researchers have in mind when they use log-linear models, and we provide practical ways to find it in the presence of heteroskedasticity. We also examine elasticities in exponential models which are closely related to log-linear models. An empirical illustration for health expenditure elasticity with respect to income is provided to demonstrate our main findings. © 2020 Walter de Gruyter GmbH, Berlin/Boston. | - |
dc.language | English | - |
dc.language.iso | en | - |
dc.publisher | De Gruyter Open Ltd | - |
dc.title | Finding Correct Elasticities in Log-Linear and Exponential Models Allowing Heteroskedasticity | - |
dc.type | Article | - |
dc.contributor.affiliatedAuthor | Lee, M.-J. | - |
dc.identifier.doi | 10.1515/snde-2018-0099 | - |
dc.identifier.scopusid | 2-s2.0-85091353117 | - |
dc.identifier.wosid | 000661734800005 | - |
dc.identifier.bibliographicCitation | Studies in Nonlinear Dynamics and Econometrics, v.25, no.3, pp.81 - 91 | - |
dc.relation.isPartOf | Studies in Nonlinear Dynamics and Econometrics | - |
dc.citation.title | Studies in Nonlinear Dynamics and Econometrics | - |
dc.citation.volume | 25 | - |
dc.citation.number | 3 | - |
dc.citation.startPage | 81 | - |
dc.citation.endPage | 91 | - |
dc.type.rims | ART | - |
dc.type.docType | Article in Press | - |
dc.description.journalClass | 1 | - |
dc.description.journalRegisteredClass | ssci | - |
dc.description.journalRegisteredClass | scopus | - |
dc.relation.journalResearchArea | Business & Economics | - |
dc.relation.journalResearchArea | Mathematical Methods In Social Sciences | - |
dc.relation.journalWebOfScienceCategory | Economics | - |
dc.relation.journalWebOfScienceCategory | Social Sciences, Mathematical Methods | - |
dc.subject.keywordPlus | RETRANSFORMATION | - |
dc.subject.keywordPlus | ESTIMATOR | - |
dc.subject.keywordAuthor | exponential model | - |
dc.subject.keywordAuthor | log-linear model | - |
dc.subject.keywordAuthor | mean elasticity | - |
dc.subject.keywordAuthor | quantile elasticity | - |
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