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In: Economics

How can we use “linear regression” to estimate non-linear functional forms?

How can we use “linear regression” to estimate non-linear functional forms?

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Expert Solution

The general guideline is to use linear regression first to determine whether it can fit the particular type of curve in your data. Nonlinear regression can fit many more types of curves, but it can require more effort both to find the best fit and to interpret the role of the independent variables.

Rahul Sunny answered 2 years ago
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