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ameihandoi

begrconomelrics.
CauselliBconomics
apielag Nemilog
del Hssignen
Deuble-Log 4 Somi laq Madils
e
just discussed th iaitation
Linax Modu in case rnpuia
las hc hus iaea tadelsslach.
eh.langy in_caapuing tak Ja
Oe hme Atnaajc vahiable

Suckelashcid, haeuck can be eadly omputtd


amhscalledle iaeas dul
As e skos his Mada althauyh
LAea in Pkame exs not neax insoiLabla

HG gcouzth_cak Can be meahuhedby


Sa-called Senai modl, shich hilk linea
paamek n aeax iaoia.bles.
KpoLat to oe _saa uen withn
coniae he aeaiapasametr u madil
pnodel can 0ssupaL Oiehy bunchona
onas
Tk tchnica honges becauseahis Con be
crplaiacd as/
tor a rgaodaltaeak inerplanataauaHiablels)_
sae change dpendeataiable femains
constant Jor a unt chanjs in tiplanakanwadioalle
ohexe aso secodels sea agak in _eplanakany uanis
k dop doss t emain Lonstaat
2a4e

Tke Log- Linean Madal

Ha measuxe flasticit
Let s considex olloinguactionacm
he dennand uoclio

Ax

ohme i uant demanded4 Xisis pcica


T modlisnon linea in hyaiabl .
sing calaalus it Ca be shoon had
Axa-

nhich sha hat ha sat changa h


espectto is at constana

Leabe loqan both sides, in

Ln Y lnA+ falaxi
ahche = the natusal leg hatis logoihm ta
h base
No e tak,
In A:

C a nw i t q a

LnY; Al X
0 x2shmatin4 Purpasea, eCan rit
his_madil a

InYi A,+BalaXt u

Nou this is a lineax eg session aua.dal x


the paame-tens B 4Ba nt ha madil inea
Madal s also linca ia hs gaaithns eth
waniables y and x
Becae hs lineasihySuth onadls
called doule- lag x g ineasmadlb
because in becaue iaeaniky
both aniables in tha lrgAth uaiables
Date

Noua dabe

Can R_he aboue cdadel as

it i Liasar in bath the ponarme-le A


tonsfocnaed iables y Y

th asap-hions tLLRM n satispied


tnamed aadel, lu)_caa h
c0sily estimatd uith thusual oLS oudhae
esieaatasshus abtoiaedill haue
A usLal BLUEpinpedie
One atcoaciue eoate ha doubla- ng masd1l
isthot th slape coe licient Ba measurel1
hastic th Scapect -
Graphical Lebrekentatim

YAx

Pric
Pic
Ca)

big Ca) hepcesenthunchion


iA la)
shausi Lagarcthmic anarmatian
he straight lins skaan in The slope
Astimat price sashody L bgives
An impeotuce al lag laeakmadel she
be oppaueata
a saisht Lin i Seatakug in
ih skope
h Mnkiag i lahieity anitant thn
Canshaat
Becaus pecindaduce dou.blelos
Llasiaeak dad sol nouaa
losi Mode H Contan
Tk Seni le Madel
mensueth Grouih s l
Ho
gaia #a
Elosoitshuisnus peopl 4
ad sah ok
ianuated ininding
CoiainLtenDmic daniahles
phajectin h g u t budaat
fa xample th hpuajechd sot
delict suplus u bakedoo
h NP

lahissectim oe sho hau ghiL analusis


Lan be used measuh SMk outh haks

Sunppase 20nt mmiu th at


gcouth eu cceditutstanding () vex
his pehiad
Tnbingh tguakon

la)
whexL

Y inihal ualue
'salue at dica

e manipulak 19uatiop (a)b talk.nga natucalL


log anDoth sides =

Alau et-

Thenae
Lincar

ke ary ath
d02adlin
h4smodul thatpaamenP4 Pa

ah aea dlfenancui that depen.dent


agarithao 4hioadp.

NaHinbleis aul
t n d i a d v o u n i a b l e i s t i o n e
hieh uu

calhd Jem moal


madelau
Hothese ahtheit
Decauseenly am yatable appeaá 1

lotenpretation h ndlAa)

aression s as Rallasoi
he indspretntioa P2m.ens a ha
ba siapcoicieat
has betn ccodLAg a
0uagehlg-
ak Apek yeas
has been incheasingat
la plais
th nat aa pn yeak
per yao ariaa Scu
masel Lk ce4-modal in hhe slope
soe
caeltad_atasures heproportiona Stelaliue
chaage i jaragu ohinuk chane in
Lrplenatary uakuabla, tionein e presen cak
Ka helahue chaaga aulipkied by leo
abtain pehcenaga chango_a th
rOh ae
hu Seml9 models are
Because
kaousas Jouthmodel and Such
madela HOuhnelg sed aeasute

th gsouth toatt coan8 aiables

Indenprehatian othandexcept om ( )
h e eshmate a

TBaete abe thaandilag


aniley(e)
leueo at

dn Y
dk

helaive changaia>
absolude_chang iat
ostantaneau vesu Compound Kad To

Ne-icerom 9 lA)-

Thula-
atilg-ln)-a)
ohichmeansthat

-anhlylAa-L-
And siuna the Campauad ucki
L e haueoblaiaed f e Can Losl
s sáocade tha cocmpauna Sa
cta
whilea givet instantantou o
gcauwthat apaiot ne
Juuesh uale Coapauad fale
auer apehiod im
Th ia lag Madel
In hu euLDussecon censidexed h
ecouathmadal in ahich dependent uattable
as ioay aN but esplaaato Jry wanjable
as in Laeat
Can call
fan dsciphuePupase+
Such a
odela
o La

lo AaSecion e onsid a made wheru


th olependent uaioble & Lincan oxa
but t plana uaiable
Appxapiately, a call hisMade K
a gmadel

ansider the Madel a=

As oe bnou hat a chany ia tlg-


a ulative-
aksotark ckary
relative_cberein X

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