HW- ARE 106 Econometric Theory and Applications Must A (Stata Needed)
1. Believe the subjoined equation by OLS using wonted smallest squares:
where and . ln()ttpP= ln(Q)ttq=
2. What is your believe of the elasticity of call-for? Your believe is balancebearing, so it looks enjoy something is wickedness. In the subjoined questions, we obtain try to aspect out what is wickedness.
3. First, the estimate of a dollar radical a lot from 1926 to 2014. We should veritably use legitimate figures rather than pretended figures. Run the retreat:
where is the legitimate figure. ln()ln(CPI)tttrP=−
4. Compute a 95% self-reliance interim for β1.
5. Proof for autocorrelation in the untruths of your retreat in (3). What are the implications of your proof issue for representing your issues in (3) and (4)?
6. Use the Newey-West punishment to fix the retreat in (3). Try using up to 12 lags in the punishment.
7. Plot the log legitimate figure (rt) balance period. What is the covet run bend in figures?
8. It is practicable that figures are substance driven by some bends not allied to amount. Re-believe your retreat standard in (3) delay the year as an subjoined right-hand-side unsteady.
9. Now, let’s judge changing the standard by adding the lags of figure and amount.
Test for autocorrelation.
10. Using the argument on slides 21 and 23 from Ch 9, represent the issues from your retreat in (9). What is the covet-run elasticity of call-for? Represent the untruth punishment standard.
11. We are representing our retreat parameters as inverse elasticities of call-for. What certainly are we stiff environing how corn origination is immovable?
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