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by smaria
Mon Dec 24, 2012 12:30 pm
Forum: Econometric Discussions
Topic: first derivative
Replies: 0
Views: 1801

first derivative

how do i take first derivative?

the question in my assignment is: What is the rate of change in CM due to change in PGNP? [Hint: differentiate your estimated equation by PGNP]. Is the rate of change positive or negative? Does it make intuitive sense?
by smaria
Thu Dec 20, 2012 8:53 am
Forum: Data Manipulation
Topic: categorical dummy variables
Replies: 2
Views: 2722

Re: categorical dummy variables

can you please explain with reference to my question? it would be a great help.
by smaria
Thu Dec 20, 2012 8:06 am
Forum: Data Manipulation
Topic: categorical dummy variables
Replies: 2
Views: 2722

categorical dummy variables

W=a_0+ a_1 IQ+ u_t now use education dummy [EDUi] as intercept to study the impact of education level on wage earning patterns [include IQ as well]. Note that the dummies represent the following categories: EDU1= { 1 primary, 0 otherwise} EDU2= { 1 secondary, 0 otherwise} EDU3= { 1 BSC, 0 otherwise}...

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