Question: Use the data in FERTIL3.RAW for this exercise. (i) Add pe t-3 and pet-4 to equation (10.19). Test for joint significance of these lags. (ii)

Use the data in FERTIL3.RAW for this exercise.
(i) Add pe t-3 and pet-4 to equation (10.19). Test for joint significance of these lags.
(ii) Find the estimated long-run propensity and its standard error in the model from part (i). Compare these with those obtained from equation (10.19).
(iii) Estimate the polynomial distributed lag model from Problem 10.6. Find the estimated LRP and compare this with what is obtained from the unrestricted model.

Step by Step Solution

★★★★★

3.45 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

i ii The estimated equation is gfr 9205089 pet 0040 pet1 1531 3108 pillt 390 333 126 2134 ww2 1154 n ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

839-M-E-E-A (674).docx

120 KBs Word File

Students Have Also Explored These Related Econometric Questions!

Use the data in FERTIL3.RAW for this exercise. (i) Graph gfr against time. Does it contain a clear upward or downward trend over the entire sample period? (ii) Using the data through 1979, estimate a...

Use the data in MATHPNL.RAW for this exercise. You will do a fixed effects version of the first differencing done in Computer Exercise C13.11. The model of interest is where the first available year...

Use the data in APPLE.RAW for this exercise. These are telephone survey data attempting to elicit the demand for a (fictional) "ecologically friendly" apple. Each family was (randomly) presented with...

C7 Use the data set CONSUMP.RAW for this exercis (i) Estimate a simple regression model relating the growth in real per capita consumption (of nondurables and services) to the growth in real per...

C10.8 Use the data in FERTIL3.RAW for this exe (i) Add pe,-3 and pe,-4 to equation (10.19). Test for joint significance of these lags. (ii) Find the estimated CCSLER propensity and its standard error...

C14 Use the data in MINWAGE.RAW for this exercise, focusing on sector 232. (i) Estimate the equation gwage232t 5 b0 1 b1gmwaget 1 b2gcpii 1 ut , and test the errors for AR(1) serial correlation. Does...

Use the data in MINWAGE for this exercise, focusing on sector 232. (i) Estimate the equation gwage232t 5 b0 1 b1gmwaget 1 b2gcpii 1 ut , and test the errors for AR(1) serial correlation. Does it...

,, Hi expert solve this Consider the following models describing the relationship between monthly return on the Standard & Poor's 500 stock market index (rsp500), the re- turn on three-month T-bills...

Use the data in FERTIL3 for this exercise. (i) Add pet23 and pet24 to equation (10.19). Test for joint significance of these lags. (ii) Find the estimated long-run propensity and its standard error...

C5 (i) In the wage equation in Example 14.4, explain why dummy variables for occupation might be important omitted variables for estimating the union wage premium. (ii) If every man in the sample...

The following series of 10 observations of sales of a company are given as followed, 390, 390, 320, 370, 340, 330, 340, 390, 310, and 350 (All figures in Rupees Lakhs). Given initial forecast is 350...

Consider Example 5o, which is concerned with the number of runs of wins obtained when n wins and m losses are randomly permuted. Now consider the total number of runsthat is, win runs plus loss...

9: You are an independent caterer specializing in social events. Among your staff is an event manager, an executive chef, six part-time servers and four part-time cooks. For each event, a 21% service...

a. Verify that (14.54) provides the relation between the AOV expected mean squares and the expected values of the AVE quadratic forms. b. Use the Kronecker product definition of the mean squares in...

Explain briefly the meaning of a. Autocorrelation b. First-order autocorrelation c. Spatial correlation

Complete the following table: Number of explanatory Durbin-Watson Evidence of Sample size variables 0.83 1.24 1.98 3.72 20

Use the runs test to test for autocorrelation in the following cases. (Use the Swed-Eisenhart tables. See Appendix 10A.) Sample Numbef Number of Number of size runs Autocorrelation () 18 30 38 15 10...

Please show work and steps on how you got the answer 16) Michael is given a randomly generated work ID consisting of 4 digits (with no restriction, meaning repetition allowed and it can start with a...

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $50. The fixed costs incurred each year for factory...

New - Project Analysis of the project's 5 - year life. Madison's marginal tax rate is 4 0 % , and a 1 2 % cost of capital is appropriate for the project. indicated by a minus sign. NPV: $ IRR: %...