Suppose you have estimated a log log model of life expectancy as a function of income in which log LE = 3.7 +0.4 x log INC where LE is life expectancy measured in years and INC is income measured in £000s. What is your estimate of the elasticity of life expectancy with respect to changes in income?

Suppose you have estimated a log log model of life expectancy as a function of income in which log LE = 3.7 +0.4 x log INC where LE is life expectancy measured in years and INC is income measured in £000s. What is your estimate of the elasticity of life expectancy with respect to changes in income?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 8QAP

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