Suppose you have estimated a log log model of life expectancy as a function of income in which log LE = 3.7 + 0.1 x log INC where LE is life expectancy measured in years and INC is income measured in £000s. What is your estimate of the elasticity of life expectancy with respect to changes in income?

Answer rating: 100% (QA)

In the loglog model provided the equation is given as logLE 37 01 logINC To find the elasticity ... View the full answer