Interpretation of Log models o If the model is In()=Bo+BIn(x)+u o, is the elasticity of y with respect to x o If the model is In()=Bo+Bx+u e B, is approximately the percentage change in y given a l unit change in x o If the model is y=Bo+ BIn(x)+u B, is approximately the change in y for a 100 percent change in x Economics 20- Prof anderson 5Economics 20 - Prof. Anderson 5 Interpretation of Log Models If the model is ln(y) = b0 + b1 ln(x) + u b1 is the elasticity of y with respect to x If the model is ln(y) = b0 + b1 x + u b1 is approximately the percentage change in y given a 1 unit change in x If the model is y = b0 + b1 ln(x) + u b1 is approximately the change in y for a 100 percent change in x