* Alternative Functional Forms * Reference: Section 6.3 of * R. Carter Hill, William E. Griffiths and George G. Judge, * Undergraduate Econometrics, Second Edition, Wiley. * * Table 3.1 contains data on food expenditure (Y) and weekly income (X) * from a random sample of 40 households. SAMPLE 1 40 READ (TAB3-1.shd) FOOD INCOME / SKIPLINES=1 * The reciprocal model GENR X1=1/INCOME * the LININV option reports correct elasticities OLS FOOD X1 / LININV * The linear-log model GENR LINC=LOG(INCOME) * the LINLOG option reports correct elasticities OLS FOOD LINC / LINLOG * The log-log model GENR LFOOD=LOG(FOOD) * the LOGLOG option reports correct elasticities OLS LFOOD LINC / LOGLOG STOP