Econometrics is not just about complex mathematical model; one needs to understand economic theory before they...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Econometrics is not just about complex mathematical model; one needs to understand economic theory before they can do estimation of the parameters. As a junior econometrician you are required to do the following in line with the methodology of econometrics. A. Derive the Maximum Likelihood estimator for the intercept and slope to test the relationship between government policy and economic recovery. [10 marks] B. What are the properties of these estimators? C. Prove that the estimators are unbiased and have minimum variances, [5 marks] [5 marks] D. What steps will you undertake to obtain empirical evidence of the relationship between government policy and economic recovery as well as be able to comment on the decision? [5 marks] E. What is the importance of a stochastic term in the relationship stated above? [5 marks] Econometrics is not just about complex mathematical model; one needs to understand economic theory before they can do estimation of the parameters. As a junior econometrician you are required to do the following in line with the methodology of econometrics. A. Derive the Maximum Likelihood estimator for the intercept and slope to test the relationship between government policy and economic recovery. [10 marks] B. What are the properties of these estimators? C. Prove that the estimators are unbiased and have minimum variances, [5 marks] [5 marks] D. What steps will you undertake to obtain empirical evidence of the relationship between government policy and economic recovery as well as be able to comment on the decision? [5 marks] E. What is the importance of a stochastic term in the relationship stated above? [5 marks]
Expert Answer:
Answer rating: 100% (QA)
A Deriving the Maximum Likelihood Estimator MLE for the intercept and slope to test the relationship between government policy and economic recovery Lets consider a simple linear regression model to t... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these economics questions
-
On November 1 2014, Fain Corporation paid principal and interest on a 6 month, 8% note payable with a face amount of $5000. How did this affect Fain financial statement? Exp Liabilities Stk Rev Net...
-
Introduction Some 25 years ago, one of the authors wrote an article (Stevens, 1989) that sought to explicate the state-of-the-art in supply chain management (SCM). This was at a time when SCM was...
-
Your uncle has a caf is considering investing in a new project line to expand her caf business to a larger scale that is more of a restaurant like. It is expected that an initial investment of...
-
Read the Comp & Ben Case Study and answer the following question: To the degree job growth (and increased car sales that come from m costs) is based on two tier-wage structures, how sustainable...
-
Contingent Liabilities Several independent items are listed for which the outcome of events is unknown at year-end. a. A company has been sued by the federal government for price fixing. The companys...
-
Determine the input conditions required for each Z output in Figure 9-23 to take on the logic level of its corresponding I 0 input. Repeat for I 1 . Figure 9-23 mi E SO S IW E 12 116 116 11d los loo...
-
The Anchor Glass Container Corporation and its parent company, Consumers Packaging, Inc. (CPI), entered into a series of agreements with Encore Glass, Inc., to supply glass containers of a specific...
-
Rogers Corporation purchased machinery on January 1, 2012, at a cost of $250,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of...
-
Research articles on Online Analytic Processing (OLAP) and Online Transaction Processing (OLTP). Next, compare and contrast the key similarities and differences between Online Analytical Processing...
-
A hydroponic garden uses the 10 m long perforated pipe system shown below to deliver water at 20 degrees Celsius. The pipe is 5 cm in diameter and contains a circular hole every 20 cm. A pump...
-
If at any time it is determined that the application of best available control technology by 1983 will not assure the protection of public water supplies, agricultural and industrial uses, and the...
-
How do businesses change their prices at different levels of output, and how does this lead to an upward-sloping aggregate supply curve?
-
Seana owns a small pet shop and expects inflation to be 3% next year. By how much does Seana expect her marginal costs to change? By how much does she expect her competitors prices to change?
-
In Uganda, GDP per person is $2,280 per year, and in Japan it is $42,338. What do you think is likely to happen to each countrys GDP per person if they both increase their physical capital per person...
-
Your parents are thinking about purchasing bonds with a 25-year term, but they are a little worried that they might need the money before the 25-year term is up. How would they go about accessing the...
-
What changes to the economy will lead the aggregate demand curve to shift? What changes will lead to a movement along the aggregate demand curve? Provide a few examples to illustrate your answer.
-
Which of these functions in excel is best suited for extracing a substring from within a long text message? a) LOWER Ob) TRIM Oc) MID d) LEN e) CONCAT
-
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...
-
The following information is available for Mandalay Company: Required(a) Determine the material price variance based on the quantity of materials purchased.(b) Determine the material quantity...
-
Traditional cost reduction versus target costing Traditional cost reduction in the United States differs significantly from the Japanese method of target costing. Required Discuss the similarities...
-
Characteristics of a MACS: ethical framework List and describe the hierarchy of ethical considerations.
-
A child receives \($100\),000 as a gift, which is deposited in a bank account earning 6 percent compounded semiannually. If \($5\),000 is withdrawn at the end of each half year, how long will the...
-
The plan was to leave $5,000 on deposit in a savings account for 15 years at 6.5 percent interest compounded annually. It became necessary to withdraw $1,500 at the end of the fifth year. How much...
-
A deposit of $3,000 is made in a savings account that pays 7.5 percent interest compounded annually. How much money will be available to the depositor at the end of 16 years? a. $8,877 b. $10,258 c....
Study smarter with the SolutionInn App