Re: [Gretl-users] First derivation series

Thank you Peter --- On Mon, 7/25/11, Summers, Peter <psummers(a)highpoint.edu&gt; wrote: From: Summers, Peter <psummers(a)highpoint.edu&gt; Subject: Re: [Gretl-users] First derivation series To: "Gretl list" <gretl-users(a)lists.wfu.edu&gt; Date: Monday, July 25, 2011, 4:15 PM Anutechia, What John's saying is that you need a model (ie, an estimating equaion) for the relationship between TC and LC. Suppose it's a simple linear relationship: TC = a + b*LC + u where a is a constant and u is an unpredictable error term. Then just regressing TC on LC in gretl will give you the marginal effect as the estimated value of b. More complicated models might include powers of LC or other variables. In those cases the marginal effects would be a bit more complicated. For example, in a quadratic model TC = a + b*LC + c*LC^2 + u (ie, include squared labor costs), the marginal effect would be b+2*c*LC (so the marginal effect depends on the level of LC). You might want to have a look at a basic econometrics text like Stock & Watson for more details on interpreting regressions. Good luck! PS ________________________________ From: gretl-users-bounces(a)lists.wfu.edu [gretl-users-bounces(a)lists.wfu.edu] on behalf of Anutechia Asongu [simplice_peace(a)yahoo.com] Sent: Monday, July 25, 2011 5:59 PM To: Gretl list Subject: Re: [Gretl-users] First derivation series Dear John C Frain,                            I'm afraid, I can't grasp a detail in what you just disclosed. Does estimation of the required marginal effect synonymous to obtaining a series for the marginal effect?                           Thanks --- On Mon, 7/25/11, John C Frain <frainj(a)gmail.com&gt; wrote: From: John C Frain <frainj(a)gmail.com&gt; Subject: Re: [Gretl-users] First derivation series To: "Gretl list" <gretl-users(a)lists.wfu.edu&gt; Date: Monday, July 25, 2011, 2:32 PM You must first specify some structural equation for the relationship between TC and LC, (and other relevant variables).  Estimate this relationship using gretl.  (How you do this depends on your model and the possible presence of other endogenous models.)   You can then easily estimate the required marginal effect. Best regards John On 25 July 2011 21:28, Anutechia Asongu <simplice_peace(a)yahoo.com&lt;UrlBlockedError.aspx&gt;&gt; wrote: Hi all,        Say I have a two series: Total Cost(TC) and Labour Cost(LC). I wish to obtain another series for the partial derivative of TC with respect to LC (dTC/dLC). Any hint on how this could be done via Grelt.       Thanks _______________________________________________ Gretl-users mailing list Gretl-users(a)lists.wfu.edu&lt;UrlBlockedError.aspx&gt; http://lists.wfu.edu/mailman/listinfo/gretl-users -- John C Frain Economics Department Trinity College Dublin Dublin 2 Ireland www.tcd.ie/Economics/staff/frainj/home.html<http://www.tcd.ie/Economic... mailto:frainj@tcd.ie<UrlBlockedError.aspx> mailto:frainj@gmail.com<UrlBlockedError.aspx> -----Inline Attachment Follows----- _______________________________________________ Gretl-users mailing list Gretl-users(a)lists.wfu.edu&lt;UrlBlockedError.aspx&gt; http://lists.wfu.edu/mailman/listinfo/gretl-users _______________________________________________ Gretl-users mailing list Gretl-users(a)lists.wfu.edu http://lists.wfu.edu/mailman/listinfo/gretl-users