Solve the Following:

 

a) Has the consumption model been determined? By what method do you estimate the model coefficients? C= a +BY+u Y=C+I a) a) Write the reduced form model of the consumption model using the following information with deviations from the averages and estimate the coefficients? 1=20 21140 cy=40 b) c) b) Estimate the coefficients of the Consumption model using the two-stage least squares method using the following information with deviations from the averages? Can you write the steps? Ey=50 Ysapka = 60 C=50 I=30 C = 50 d) If capital expenditure (I) in the Keynesian model is increased by 1 unit, how much will income (Y) increase? d) d) Granger causality test results between consumption and income are given below. Accordingly, do the test results support the simultaneous model above? Is there unidirectional or bidirectional causality? Variables C is not the Granger cause of Y. Y is not the Granger cause of C F value 10 8 Probalility value 0.0001 0.0005 Show how you reached the value of F=10 for the consumption model, using the 1-delay VAR model? e) State the difference between the single equation estimation method and the system methods. Which methods are single equation estimation methods? What characteristics should the appropriate vehicle variant have?