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The sensible thing to do is a fit in a log-log plot - the "intercept" is the quantity of interest here, and the "slope" is being taken as 1 but could be fitted too.

Or, rather, three fits.

One for all six rows in Vladimir's table - that's the "null hypothesis".

One for the 3 Serb rows and the 3 non-serb rows. That's more or less equivalent to was was done in the diary.

Or you could do a test on whether the 3 Serb and 3 non-Serb points fall above or below the "null hypothesis" regression line. The trouble is, with only 6 points you probably can't say anything with 95% confidence.

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith

by Migeru (migeru at eurotrib dot com) on Tue Mar 17th, 2009 at 08:06:03 AM EST
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