<p>Let me give you a hint since this question seems to be a kind of homework question. Suppose the following model: </p>

<p>$\ln y = \beta_1 \ln x_1 + \beta_2 \ln x_2 + \epsilon$.</p>

<p>In this model, $\beta_1$ and $\beta_2$ are elasticities and one can be tested against the other with a $F$ statistic. </p>

CC BY-SA 3.0
2018-04-29T15:51:48.290Z
2018-04-29T15:51:48.290Z
emeryville
<p>How can I test in a multiple regression model whether a drop of 1% in $x_1$ will cause a larger effect than a 1% drop in $x_2$, given that I used the growth rates of my dependent and independent variables?</p>

<regression>
Multiple regression
Hisham Hany Mohamed
# Multiple regression

(Asked by: username_0 on 2018-04-29)

How can I test in a multiple regression model whether a drop of 1% in $x\_1$ will cause a larger effect than a 1% drop in $x\_2$, given that I used the growth rates of my dependent and independent variables?

**Tags:** regression


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## 1 answers

### Answer by username_1 on 2018-04-29. Score: 1

Let me give you a hint since this question seems to be a kind of homework question. Suppose the following model:

$\ln y = \beta\_1 \ln x\_1 + \beta\_2 \ln x\_2 + \epsilon$.

In this model, $\beta\_1$ and $\beta\_2$ are elasticities and one can be tested against the other with a $F$ statistic.


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