Which of the following econometric models are linear in parameters or variables (state if
they are linear in both)? Explain briefly what kind of data transformation would be needed
to estimate the parameters of these models.
i) Yi = ?1 + ? 2 Xi
2+ ?3 Xi
3 + ui
ii) Yi= ß1 + ß2 ln X + ui
iii) Yi = ß1 + ß2X ß3 + ui
iv) ln Yi = ln ? 1 + ?2 ln Xi + ui
v) ln Yi = ?1 - ?2 (1/Xi) + ui