Demand function problem

bryangoodrich

Probably A Mammal
#3
That's typical OLS regression stuff and understanding it in the context of elasticity. I can solve it just fine; did my share in grad school. However, if you have an exam on this, it means they covered how to do it in class and that you have resources that explain this. I'm not going to do your work to explain what you should have already learned, and if you don't know how to do any of this problem, then you need to start over. Trying to learn how to do statistics in the context of econometric models in 3 days just isn't going to work. Therefore, are you capable of doing this sort of stuff or is there something specific that you don't understand about the problem question? It's really just one question with 5 parts because every question builds upon the requisite knowledge to do the next one (know how to set it up [a] to do OLS ; how to interpret demand changes in the log-log model [d] to answer what that says about price elasticity of demand [e]).
 
#5
I guess that many have seen this type of homework a hundred times.

But more interesting, in my view, is if anybody ever have seen this type of model used for real data and if the model "works"?
 

ted00

New Member
#6
I used to think the good 'ole days of dealing with answer-moochers would be behind me once I left school ...... untill I worked in the real world :shakehead

( I guess I didn't realize it, but they get jobs too! )
 

bryangoodrich

Probably A Mammal
#7
I guess that many have seen this type of homework a hundred times.

But more interesting, in my view, is if anybody ever have seen this type of model used for real data and if the model "works"?
You mean elasticity? Yeah. Economist use these models all the time. They're nothing special, just log-log models (typically) based on demand schedules observed to model how sensitive demand has been due to price changes. More interesting are cross-elasticity models

This is also not a new question at TS: http://www.talkstats.com/showthread.php/37480-Price-Elasticity-based-on-log-regression