Expenditure on housing services, HOUS, was regressed on DPI, the relative price index for housing, PRELHOUS, and the lagged value of HOUS, HOUS(-1), for the period 1959-1994 for the United States using the Demand Functions data set. The regression was repeated in logarithmic form, LGHOUS being regressed on LGDPI, LGPRHOUS, and LGHOUS(-1), with the results summarized below. Give an interpretation of the regression coefficients, paying attention to the dynamics implicit in the model.
