Academic-quality transformation tools for ungrouped numeric data in econometrics & statistics
Functional Forms of Regression Models The Semi-Log Model in Econometrics In the previous article, we examined the Double-Log Model, where both the dependent and independent variables are expressed in logarithmic form, allowing coefficients to be interpreted as elasticities. However, not all economic relationships exhibit constant elasticity, making other functional forms
Various Functional Forms of Regression Models Double-Log Model Explained with Examples Introduction Regression analysis is one of the most powerful tools in econometrics, but a model is only as good as its functional form. Choosing the wrong functional form does not just produce a slightly different result — it can
Permanent Income Hypothesis How Long-Term Income Expectations Shape Consumption Why does a person who wins a lottery not double their monthly grocery spending? Why does a household facing a temporary pay cut still try to maintain its usual lifestyle? These everyday observations puzzled economists for decades, until American economist Milton
Relative Income Hypothesis How Social Comparison Shapes Consumption Why do two families earning the exact same income spend such different amounts on consumption? Why does a household that loses part of its income during a recession still find it so hard to cut back on spending? These questions puzzled economists
Saving Function Definition The saving function shows the functional relationship between saving and disposable income. It tells us how much a household wants to save at a given income level. Thus, S = f(Y). Equation Where C₀ = autonomous consumption, c = MPC or Where S₀ = −C₀ (autonomous saving/dissaving)
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