For the demand function in Eq. (8.6.24) how would you test the hypothesis that the income elasticity

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For the demand function in Eq. (8.6.24) how would you test the hypothesis that the income elasticity is equal in value but opposite in sign to the price elasticity of demand? Show the necessary calculations. (cov [β̂₂, β̂₃] = −0.00142.)

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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Question Posted: Apr 30, 2018 03:46 AM

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For the demand function in Eq. (8.6.24) how would you test the hypothesis that the income elasticity

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The null hypothesis is that 2 3 that is ...View the full answer

Basic Econometrics

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