Compute the likelihood ratio test

Assignment Help Econometrics
Reference no: EM131407076

For the Money Supply, GNP and interest rate series data for the U.S. given on the Springer web site as MACRO.ASC, fit a VAR three equation model using:

(a) Two lags on each variable.

(b) Three lags on each variable.

(c) Compute the Likelihood Ratio test for part (a) versus part (b).

(d) For the two-equation VAR of Money Supply and interest rate with three lags on each variable, test that the interest rate does not Granger cause the money supply?

(e) How sensitive are the tests in part (d) if we had used only two lags on each variable.

Reference no: EM131407076

Questions Cloud

Is this woman critique of polling techniques appropriate : During a recent U.S. election, the news media interviewed a group of women in Florida. Is this woman's critique of polling techniques appropriate? Why or why not
What speed bumps did you face in reading this essay : What is the issue?What is her conclusion?What are the reasons?Is the rational and/or evidence she provides enough to lead you to the same conclusion? Why or why not? What speed bumps did you face in reading this essay?
Determine one specific approach you can take to incorporate : From the second e-Activity, determine one specific approach you can take to incorporate the video into the classroom or training. Propose three questions for potential students to respond to, based on the selected video.
Analyze the level of collaboration : Analyze the level of collaboration that exists between the interviewed stakeholders and the school counseling program. Propose strategies that could be utilized to improve collaboration
Compute the likelihood ratio test : For the two-equation VAR of Money Supply and interest rate with three lags on each variable, test that the interest rate does not Granger cause the money supply?
Briefly rephrase the thesis and restate your stand : Introductory statement (one or two sentences), formulating the issue involved in the topic you picked. Thefollow up with a statement of your thesis which is your stand on the issue.Transitional statement pointing out how you'll be establishing the ..
What lifestyle changes can you implement today : Reflecting on issues such as sleep, nutrition and eating behavior, exercise, substance use, and prevention of illness, what lifestyle changes can you implement today
How teams are used in your chosen career field : Research how teams are used in your chosen career field. Sources may include books, journal articles, internet websites, professional associations, and informational interviews with professionals in your career field.
Similarities and differences between the two works : Choose a pair of Monsters/Monstrous Humans from the assigned readings. This monster/monstrosity will serve as your focus area for a 5 to 6 page (double-spaced) position paper about the ways they are represented through one or more theses presented..

Reviews

Write a Review

Econometrics Questions & Answers

  Problem 1 when asked to write a regression model a few

problem 1 when asked to write a regression model a few past students have written the model as followsexplain what is

  Check if these two predictions are consistent with the data

Show that output per worker increases in the long run when the savings rate increases or when the population growth rate decreases. Check if these two predictions are consistent with the data.

  How much the account earns interest per year

How much must you deposit in your retirement account each year for 10 years starting now (i.e., years 0 through 9) if you want to be able to withdraw $50,000 per year forever beginning 30 years from now Assume the account earns interest at 10% per..

  Determine the value of m1 and m2 multipliers

If the ratio of currency to transaction deposits is 2, the ratio of nontransaction deposits to transaction deposits is 5, the ratio of retail money-market funds to transactions deposits is 1, the ratio of required reserves to transactions deposits..

  What conditions exist when economic profits are maximized

What do think would happen to competition in the industry where you work if, say, a certain number of firms would close down? What would happen to their price-making ability?

  Calculate the total surplus under free trade

a. Solve for the amount imported, consumer surplus, and producer surplus. b. Suppose a per unit tariff of $10 is imposed by the government, solve for the consumer surplus, producer surplus, government revenue and total surplus with the tariff.

  Estimate the short-run total cost using the data below

Using equation 3, a theoretical regression equation of the short-run total cost, estimate the short-run total cost using the data below. Then write the estimated cost equation. Indicate the value of the total fixed cost and of the marginal cost fr..

  What is the cost per mile to own and operate the vehicle

Annual maintenance of the vehicle is estimated to cost $700 per year. The cost of recharging the batteries is estimates at $0.015 per mile. The salvage value of the batteries and the vehicle at the end of 12 years is estimated at $2000. Consider t..

  What is the marginal user cost in each period

Given a two period model and an inverse demand curve for a depletable resource is P= 10 - 0.2q and the Marginal Cost is constant and equal to 3. a)What is the static efficient level of consumption for the resource b)If the discount rate is zero

  Describe five audit procedures that you believe

Describe what you believe will be the critical and significant auditing concerns in Borowski's General Audit Plan.

  How does a profit tax affect a monopoly''s output and price

How does a profit tax affect a monopoly's output and price? How would a monopoly change its behavior if the profit tax were 25% rather than 10%? (Hint: You may assume that the profit tax refers to the tribe's economic profit.)

  Analyze the history of changes in gdp

Describe how trade deficits or surpluses can influence the growth of productivity and GDP.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd