Question: Please assisst me regarding this homework: 1. Why could we expect the identity CA=S1 ? 2. Briefly summarize the observed evidence on the relatiouship between






1. Why could we expect the identity CA=S1 ? 2. Briefly summarize the observed evidence on the relatiouship between CA and SI. 3. The paper says that the first differences of CA and S1 are correlated even weaker than the levels of CA and SL, and so the first differences are likely to be subject to even stronger measurement error problems than the levels. Explain why the first differencies are likely to be subject to even stronger measurement error problems. (Think about the situation when the correlation for the first differences would have been stronger than that for the levels.) 4. Which measure is subject to a smaller measurement error: CA or S1 ? What is the likely reason for this? 5. What is the Feldstein-Horioka puzzle? What do the measurement errors in CA and (SI) suggest about the Feldstein-Horiokit puzzle? atually tefative, hivi The wepetakiat the at at tak is 1. Why could we expect the identity CA=S1 ? 2. Briefly summarize the observed evidence on the relatiouship between CA and SI. 3. The paper says that the first differences of CA and S1 are correlated even weaker than the levels of CA and SL, and so the first differences are likely to be subject to even stronger measurement error problems than the levels. Explain why the first differencies are likely to be subject to even stronger measurement error problems. (Think about the situation when the correlation for the first differences would have been stronger than that for the levels.) 4. Which measure is subject to a smaller measurement error: CA or S1 ? What is the likely reason for this? 5. What is the Feldstein-Horioka puzzle? What do the measurement errors in CA and (SI) suggest about the Feldstein-Horiokit puzzle? atually tefative, hivi The wepetakiat the at at tak is
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