1. Nonlinear Regression Functions
Metrics Lab

3. Think of Diminishing Marginal Returns

11. Interpreting the Estimated Regression Function

12. What is the explanation behind?
The “effect” of a change in income is greater at low than high income levels (perhaps, a declining marginal benefit of an increase in school budgets?)
Other explanations…

14. Cubic Specification STATA

15. Total Production Function

16. Natural Logarithm

17. The three log regression specifications:

18. Logarithms in Stata Syntax: generate lnx = ln(x)
generate logy = log(y)
(Varname) = Expression

19. I. Linear-log population regression function

20. Linear-log case, continued

21. Example: TestScore vs. ln(Income)

22. II. Log-linear population regression function

23. Log-linear case, continued
Standard Error of the Regression

24. III. Log-log population regression function

25. Log-log case, continued

26. Example: ln( TestScore) vs. ln( Income)

27. Summary: Logarithmic transformations

28. Summary: Nonlinear Regression Functions

29. Try it on Stata!!

30. Stop by the lab or email with questions
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