topic Derivatives in SAS/IML Software and Matrix Computations

Derivatives

Gabrielpo — Mon, 06 Oct 2014 13:15:51 GMT

I Am working on a multiple linear regression project for my econometrics class and I was asked by my professor to find any difference in the coefficients using different models (log). My professor wants to make up a mathematical formula for a derivative where the dependent variable is differentiable with respect to one of the independent variables using the means for each model. Any hints about how can I tackle this question?

thanks

Re: Derivatives

Rick_SAS — Mon, 06 Oct 2014 13:31:14 GMT

If you assume that

Y = b0 + b1*x1 + b2*x2 + ... + bn*xn + epsilon

then the mean model is just

Y = b0 + b1*x1 + b2*x2 + ... + bn*xn

Then

dY/dx1 = b1

dY/dx2 = b2

...

dY/dxn = bn

In other words, the regression coefficients ARE the partial derivatives of Y w.r.t. the independent variables.

Re: Derivatives

Gabrielpo — Mon, 06 Oct 2014 14:06:23 GMT

Thanks