TAILIEUCHUNG - Lecture Undergraduate econometrics, 2nd edition - Chapter 10: Nonlinear models

Chapter 10 - Nonlinear models. In this chapter, students will be able to understand: Polynomial and interaction variables, a simple nonlinear-in-the-parameters model, a logistic growth curve, poisson regression. | Chapter 10 Nonlinear Models Nonlinear models can be classified into two categories. In the first category are models that are nonlinear in the variables but still linear in terms of the unknown parameters. This category includes models which are made linear in the parameters via a transformation. For example the Cobb-Douglas production function that relates output Y to labor L and capital K can be written as Y aL K Taking logarithms yields ln Y Ỗ pln L Yln K Slide Undergraduate Econometrics 2 Edition-Chapter 10 where ô ln a . This function is nonlinear in the variables Y L and K but it is linear in the parameters ô p and Y. Models of this kind can be estimated using the leastsquares technique. The second category of nonlinear models contains models which are nonlinear in the parameters and which cannot be made linear in the parameters after a transformation. For estimating models in this category the familiar least squares technique is extended to an estimation procedure known as nonlinear least squares. Slide Undergraduate Econometrics Td Edition-Chapter 10 Polynomial and Interaction Variables Models with polynomial and or interaction variables are useful for describing relationships where the response to a variable changes depending on the value of that variable or the value of another variable. In contrast to the dummy variable examples in Chapter 9 we model relationships in which the slope of the regression model is continuously changing. We consider two such cases interaction variables that are the product of a variable by itself producing a polynomial term and interaction variables that are the product of two different variables. Polynomial Terms in a Regression Model In microeconomics you studied cost curves and product curves that describe a firm. Total cost and total product curves are mirror images of each other taking the standard cubic shapes shown in Figure . Average and marginal cost curves and Slide Undergraduate .

• Quản trị kinh doanh
• Undergraduate econometrics
• Lecture Undergraduate econometrics
• Kinh tế lượng
• Nonlinear models
• Interaction variables
• Logistic growth curve
• Econometric model
• Experimental data
• Statistical inference
• Random variables
• Probability concepts
• Probability density
• Linear regression model
• Economic model
• The least squares estimators
• Least squares estimators
• Simple regression model
• Interval estimation
• Hypothesis testing
• Simple linear regression model
• Coefficient of determination
• Regression analysis
• Multiple regression model
• Model specification
• The least squares estimator
• Hypothesis tests
• Collinear economic variables
• Intercept dummy variables
• Slope dummy variables
• Dummy variables
• Nature of heteroskedasticity
• Proportional heteroskedasticity
• Distributed lag models
• Finite distributed lag models
• Geometric lag
• Time series data
• Stationary time series
• Spurious regressions