9-1

chapter nine

Functional Forms of Regression Models

McGraw-Hill/Irwin

Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Figure 9-1 9-3

A constant elasticity model.

Table 9-1

Weekly lotto expenditure (Y) in relation to weekly personal disposable income (X) ($).

9-4

Figure 9-2 9-5

Log-linear model of Lotto expenditure.

Table 9-2

Real GDP, employment, and real fixed capital, Mexico, 1955-1974.

9-6

Table 9-3

Energy demand in OECD countries, 1960-1982.

9-7

Table 9-4

Population of United States (millions of people), 1970-1999.

9-8

Figure 9-3 9-9

Semilog model.

Table 9-5

Quarterly total personal expenditure and categories (billions of dollars) 1993-1 −1998-3.

9-10

Figure 9-4 9-11

The reciprocal model: Y

i = B 1 + B 2

(1/X

i

)

Table 9-6

Year-to-year percentage change in the index of hourly earnings (Y) and the unemployment rate (%) (X), United States, 1958-1969.

9-12

Figure 9-5 9-13

The Phillips curve for the United States, 1958-1969; (a) Reciprocal model; (b) linear model.

Table 9-7

Management fee schedule of a mutual fund.

9-14

Figure 9-6 9-15

Management fees and asset size.

Table 9-8

Hypothetical cost-output data.

9-16

Figure 9-7 9-17

EVIEWS output of Equation (9.31).

Figure 9-8 9-18

Cost-output relationship.

Figure 9-9 9-19

MINITAB output of regression (9.34).

Table 9-9

Cigarette smoking and deaths from various types of cancer.

9-20

Table 9-10

Gross private domestic investment and gross domestic product, United States, 1988-1997.

9-21

Table 9-11

Summary of functional forms.

9-22

Table 9-12

Functional forms of regression models.

9-23

Table 9-13

Consumer price index (Y) (1980 = 100) and the money supply (X) (marks, in billions), Germany 1971-1987.

9-24

Table 9-14

GNP and money supply, United States, 1973-1987.

9-25

Figure 9A-1 9-26

Exponential and logarithmic functions: (a) exponential function; (b) logarithmic function.