Hi,

I am buiding a supply and demand model. I have one price and one demand equation and would like to compare the different coeffecients through a reduced form system.

P=X+Z

Q=P+X

However they are in different magnitude (different datasets), so i cannot compare the marginal effects.

I was thinking of converting the marginal effects into elasticities, is this an ok way of doing so?

Any other idea?

I am buiding a supply and demand model. I have one price and one demand equation and would like to compare the different coeffecients through a reduced form system.

P=X+Z

Q=P+X

However they are in different magnitude (different datasets), so i cannot compare the marginal effects.

I was thinking of converting the marginal effects into elasticities, is this an ok way of doing so?

Any other idea?

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