Question: The growth model Eq. (5.18) was fitted to several U.S. economic time series and the following results were obtained: a. In each case find out

The growth model Eq. (5.18) was fitted to several U.S. economic time series and the following results were obtained:

a. In each case find out the instantaneous rate of growth.
b. What is the compound rate of growth in each case?
c. For the S&P data, why is there a difference in the two slope coefficients?
How would you reconcile the difference?

Time series and perioo , , 0.0302 (44318) Real GNP (1954-1987) (1982 dollars) Labor force participation rate (1973-1987) S&P 500 index (1954-1987) S&P 500 index (1954-1987 quarterly data) 7.2492 (52929) 4.1056 0.9839 0.9464 0.8633 0.8524 0.053 (15.149) 0.0456 (14.219) 0.0114 (114.615) (27.819) t (1290.8) 3.6960 t = (57.408) 3.7115

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