Consider the macroeconomics identity C I Y ( GDP) As before, assume that C t 0 1 Y t u t and, following the accelerator model of macroeconomics, let I t 0 1 (Y t Y t1 ) v t where u and v are error terms From the data given in Exercise 18 10, estimate the accelerator model and save the results for f...

Consider the macroeconomics identity C + I = Y ( = GDP) As before, assume that C

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Consider the macroeconomics identity

C + I = Y ( = GDP)

As before, assume that

C_t = β₀ + β₁Y_t + u_t

and, following the accelerator model of macroeconomics, let

I_t = α₀ + α₁(Y_t − Y_t−1) + v_t

where u and v are error terms. From the data given in Exercise 18.10, estimate the accelerator model and save the results for further study.

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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Question Posted: May 29, 2018 03:57 AM

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Consider the macroeconomics identity C + I = Y ( = GDP) As before, assume that C

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