From annual data for 19721979, William Nordhaus estimated the following model to explain the OPECs oil price
Question:
From annual data for 1972–1979, William Nordhaus estimated the following model to explain the OPEC’s oil price behavior (standard errors in parentheses).
Ŷt = 0.3x1t + 5.22x2t
se = (0.03) (0.50)
where
y = difference between current and previous year’s price (dollars per barrel)
x1 = difference between current year’s spot price and OPEC’s price in the previous year
x2 = 1 for 1974 and 0 otherwise
Interpret this result and show the results graphically. What do these results suggest about OPEC’s monopoly power?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
The results show that the average price was higher by 522 per barrel in 1974 than ...View the full answer
Answered By
Rekha Vellatheri
I am a person with a passion towards teaching. From the childhood itself I wants to become a teacher. I completed two post graduation, one in commerce (finance) and other one is MBA (HR). I qualified National Eligibility Test for lectureship conducted by University Grand Commission of India during my last semester of masters itself. I have teaching experience in both schools and colleges. I am a cent person dedicated teacher who finds pleasure while teaching. I believe each teacher is student. Continuous updating of knowledge is required to be successful teacher . For me teaching is a process of updating myself. I am sure I can help my students in the way they wanted.
0 Reviews
10+ Question Solved
Related Book For 
Question Posted:
