The following is a fitted loglog regression model What is th

The following is a fitted log-log regression model: What is the estimated percentage change in y for a 1-percent change in x?

Solution

To get the proportional change in Y associated with a p percent change in X, calculate

a = ln([100 + p]/100) and take e^(a)

= ln((100+1)/100)

= 0.0099

e^(a) = e ^ (0.0099 * 1.56) = 1.01556

Answer = 101.56 %