Question

When using a multiplicative power function (y = a x1b1 x2b2 x3b3) to represent an economic relationship, estimates of the parameters (a, and the b's) using linear regression analysis can be obtained by first applying a ____ transformation to convert the function to a linear relationship?

Answer 1

When using a multiplicative power function (y = a x1b1 x2b2 x3b3) to represent an economic relationship, estimates of the parameters (a, and the b's) using linear regression analysis can be obtained by first applying a double-logarithmic transformation to convert the function to a linear relationship.