The growth model Eq. (5.18) was fitted to several U.S. economic time series and the following results
Question:
a. In each case find out the instantaneous rate of growth.
b. What is the compound rate of growth in each case?
c. For the S&P data, why is there a difference in the two slope coefficients?
How would you reconcile the difference?
Transcribed Image Text:
Time series and perioo в, в, 0.0302 (44318) Real GNP (1954-1987) (1982 dollars) Labor force participation rate (1973-1987) S&P 500 index (1954-1987) S&P 500 index (1954-1987 quarterly data) 7.2492 (52929) 4.1056 0.9839 0.9464 0.8633 0.8524 0.053 (15.149) 0.0456 (14.219) 0.0114 (114.615) (27.819) t (1290.8) 3.6960 t = (57.408) 3.7115
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
a Instantaneous growth 302 530 456 114 b Compound growth ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Econometric questions
-
The following model was fitted to data on 90 German chemical companies: where the numbers in parentheses are estimated coefficient standard errors and y = share price x1 = earnings per share x2 =...
-
The following model was fitted to data from 28 countries in 1989 in order to explain the market value of their debt at that time: y = secondary market price, in dollars, in 1989 of $100 of the...
-
Based on the quarterly data for the U.K. for the period 1990-1Q to 1998-2Q, the following results were obtained by Asteriou and Hall. The dependent variable in these regressions is Log(IM) =...
-
PROJECT SCENARIO You are recently appointed as the IT Consultant and Software Architect in BMS a Software Architect firm. As your first project, you are assigned by the Project Manager to propose and...
-
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: Required: 1. Calculate the debt to equity ratio for E-travel and Pricecheck. Which company has the...
-
Consider a fixed exchange rate system, in which a group of countries (called follower countries) peg their currencies to the currency of one country (called the leader country). Because the currency...
-
A simple impulse turbine has one ring of moving blades running at \(150 \mathrm{~m} / \mathrm{s}\). The absolute velocity of steam at exit from the stage is \(80 \mathrm{~m} / \mathrm{s}\) at an...
-
The controller for Nesheim Construction Company believes that it is appropriate to offset a note payable to Oregon Bank against an account receivable from Oregon Bank related to remodeling services...
-
The following table contains financial information for Dillon Incorporated before closing entries: Cash Supplies $ 12,000 4,500 Prepaid Rent 2,000 Salaries Expense 4,500 Equipment 65,000 Service...
-
The data below show retail sales at hardware stores in the United States monthly between January 1992 and December 2005. The data are in millions of dollars and are not seasonally adjusted. a. Plot...
-
The Engel expenditure curve relates a consumer's expenditure on a commodity to his or her total income. Letting Y = the consumption expenditure on a commodity and X = the consumer income, consider...
-
a. The marginal cost (MC) is the change in the TC for a unit change in output; that is, it is the rate of change of the TC with respect to output. (Technically, it is the derivative of the TC with...
-
Use regression analysis to relate the number of pack-years smoked to the bone density of the lumbar spine. Assess the goodness of fit of the regression line?
-
How to protect your ownership of the company you founded? Given the case of purchasing 9.2% stake of TWTR?
-
Assume you are preparing for a job interview as a social service worker. And you were asked these questions during the job interview. Answer the following questions to the best of your understanding....
-
Explain the phenomena of 'overinvestment' and 'underinvestment' in relation to a firm's investment strategy and its relationship to NPV. In each case give a reason as why a firm or its management...
-
(b) What risk factors might pertain to a private equity investment in the pandemic? (9 marks) (c) Explain how a MBO deal is usually structured both in terms of its corporate/legal structure and its...
-
(a) Explain the difference between a seed investment and a start-up investment and how they compare on risk considerations. (6 marks) (b) Both of these stages of investment are often financed...
-
At Barrow, Alaska, atmospheric carbon dioxide levels (in parts per million) can be modeled using the function defined by C(t) = 0.04t 2 + 0.6t + 330 + 7.5 sin(2t), where t is in years and t = 0...
-
The roof of a refrigerated truck compartment is of composite construction, consisting of a layer of foamed urethane insulation (t2 = 50 mm, ki = 0.026 W/m K sandwiched between aluminum alloy panels...
-
Use the data in SLEEP75.RAW for this exercise. The equation of interest is sleep = (0 + (1 totwrk + (2educ + (3 age + (4age2 + (5 yngkid + u. (i) Estimate this equation separately for men and women...
-
Use the data in WAGE 1 .RAW for this exercise. (i) Use equation (7.18) to estimate the gender differential when educ = 12.5. Compare this with the estimated differential when educ = 0. (ii) Run the...
-
Use the data in LOANAPP.RAW for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is...
-
A soft tennis ball is dropped onto a hard floor from a height of 1.55 m and rebounds to a height of 1.12m. (Assume that the positive direction is upward.) (a) Calculate its velocity (in m/s) just...
-
A 200 mm reinforced concrete wall carries a dead load of 140 kN/m including self-weight and a live load of 60 kN/m. It is to be carried by 500 mm thick footing with its bottom 1.5 m below NGL. Soil...
-
Using www.land.vic.gov.au look up your current place of abode to gather planning information that might be useful in assessing its future development potential. 2. Write one-page report in WORD...
Study smarter with the SolutionInn App