Functional form OLS can be used for relationships that are not strictly linear in x and y by using nonlinear functions of x and y-will still be linear in the parameters o Can take the natural log ofx, y or bot Can use quadratic forms of x Can use interactions of x variables Economics 20- Prof anderson 4Economics 20 - Prof. Anderson 4 Functional Form OLS can be used for relationships that are not strictly linear in x and y by using nonlinear functions of x and y – will still be linear in the parameters Can take the natural log of x, y or both Can use quadratic forms of x Can use interactions of x variables