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What is Activity Elasticity in Econometrics MOOC about?

This document provides a summary of an econometrics test exercise analyzing response to a direct mailing using a logit specification. It asks the student to: 1) Compute the elasticity effect of active status for a 50-year-old active male customer (0.22) and inactive male customer (0); 2) Simplify the expression for the activity status elasticity to (exp(β2) - 1) * Pr[(respi = 0|activei = 1)]; 3) Use this formula to compute the activity elasticity of a 50-year-old active male customer (0.35).

Author

edison medardo

Language

EN