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Elasticities and the double log functionIn class you were introduced to the double log regression function.ln(outputi) = X0+ X1* ln(landi) + X2* ln(labori) + NiWhat does X1represent? What does X2represent? In other words, what are the coefficients commonly called in Economics?What is the interpretation of X1and X2in terms of what they tell you about the relationship between output, land and labor?Certain values of the sum of the two coefficients have special meaning, what would X1+ X2= 1 represent? How about X1+ X2> 1 and X1+ X2< 1?=”” explain=”” what=”” it=”” means=”” for=”” the=”” production=”” function=”” in=”” the=”” three=”” cases.=””>

 
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