The models we discussed are models that are linear in parameters; variables Y and Xs do not necessarily have to be linear The price elasticity of demand~the log-linear models The rate of growth~semilog model Functional forms of regression models which are linear in parameters, but not necessarily linear in variables:
Optimal Commodity Taxation Assume that the goal is to finance expenditures with a minimum of excess burden. Assume lump sum taxes are infeasible 3 commodities: Good X. Y, and leisure