Question: Using the data from Giffen Behavior and Subsistence Consumption, estimate the parameters of the following simple linear regression model: =1 %Astapleit Bo+B1% A Pit
Using the data from Giffen Behavior and Subsistence Consumption, estimate the parameters of the following simple linear regression model: =1 %Astapleit Bo+B1% A Pit + Ei,t for each region: Hunan and Gansu. In less than two pages, show the results of your regressions and interpret your results. When interpreting your results, you have to do what we have been repeating in class several times. Specifically, comment on the following: (1) how well your model fits the data and use the appropriate statistics to support your comment, (2) the significance of your estimated model and use the appropriate stats to support this, (3) the economic implications of your estimated parameters, (4) the validity of the assumptions of your model to extrapolate predictions from the data,
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