Date: Nov 21, 2012 11:31 PM Author: Halitsky Subject: The problematic regression is actually ln(c) on ( ln(u), ln(u^2) ),<br> not c on (u, u^2) With respect to the question I asked in the top-post, I need to note

that the regression is actually

ln(c) on ( ln(u), ln(u^2) )

so one IV is twice the other, not the square of the other.