A study wishes to know whether the demand for housing of migrants differs from others. The model
Question:
A study wishes to know whether the demand for housing of migrants differs from others. The model considered is a double-log model of the form
ln Q= b0 + b1 ln P +b2 ln Y +dD +g (D*ln Y) + e
where
ln = logarithm
Q =measure of quantity of housing consumed by families
P =price of unit of housing in the family's locality
Y =measure of family income
D = 1 for migrants and 0 for others (non-migrants).
For the above model,
Income elasticity = =b2 +gD; Price elasticity = = =b1
Data are collected for 3120 families and the estimation results (with p-values in parentheses) are given below.
Model 1:
ln = 4.17 - 0.221ln P + 0.920 ln Y + 0.006D + 0.342 (D*ln Y)
(0.110) (0.020) (0.031) (0.042) (0.120)
SSE = 13640, = 0.380; F-value = 477.3, p-value=0
Q11. The income elasticity of demand for housing for migrants
- 0.92
- 0.342
- 0.006
- 1.262
|
- 0.006
- 0.342
- 1.262
- 0.92
|
- -0.221 + 0.342 + 0.006
- -0.221 + 0.006
- -0.221 + 0.342
- -0.221
|
- -0.221+ 0.342 + 0.006
- -0.221 + 0.006
- -0.221 + 0.342
- -0.221
|
- H0:g = 0 against the alternative HA:g 0, and the p-value is 0.120
- H0: 2 = 0 against the alternative HA: 2 0, and the p-value is 0.031
- H0:d = 0 against the alternative HA:d 0, and the p-value is 0.042
- H0: 1 = 0 against the alternative HA: 1 0, and the p-value is 0.020
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg