Reading 'mfx' in the reference book may help. But, it seems that using
log transformations may be the right way to go.
Pierre
-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Rita Luk
Sent: Wednesday, April 20, 2005 2:35 PM
To: '[email protected]'
Subject: st: Elasticity
Hi Statalist,
Please excuse me that this is not exactly a question about Stata, but I
think professionals here can help.
For a regression equation: X/Y = a + bZ + cK + error where X, Y, Z and
K
are variables. Given estimates of the coefficients b and c, what is the
formula for the marginal effect of Z on X ie. dX/dZ, and the formula for
the
elasticity of X with respect to Z.
I know how to get the elasticity when the Dependent is a variable in
level,
but do not know how when the dependent is a ratio.
Your information on the formula or reference materials are much
appreciated.
Thank you very much for your precious time.
Rita Luk
Research Officer
Ontario Tobacco Research Unit
Toronto, Ontario
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
