Reference no: EM131192011
Assignment-
Consider the following Cobb Douglas production function where Y is maize output, X1 is labour input, and X2 is the capital. Data for estimating this equation is given in the Table below.
Y = β0Xβ11iXβ22ieui
|
Year
|
Output, Y
|
Labor days (millions of days), X2
|
Real capital input (million of NT $), X3
|
|
1958
|
16,607.7
|
275.5
|
17,803.7
|
|
1959
|
17,511.3
|
274.4
|
18,096.8
|
|
1960
|
20,717.2
|
269.7
|
18,271.8
|
|
1961
|
20,932.9
|
267.0
|
19,167.3
|
|
1962
|
20,406.0
|
267.8
|
19,647.6
|
|
1963
|
20,831.6
|
275.0
|
20,803.5
|
|
1964
|
24,806.3
|
283.0
|
22,076.6
|
|
1965
|
26,465.8
|
300.7
|
23,445.2
|
|
1966
|
27,403.0
|
307.5
|
24,939.0
|
|
1967
|
28,628.7
|
303.7
|
26,713.7
|
|
1968
|
29,904.5
|
304.7
|
29,957.8
|
|
1969
|
27,508.2
|
298.6
|
31,585.9
|
|
1970
|
29,035.5
|
295.5
|
33,474.5
|
|
1971
|
29,281.5
|
299.0
|
34,821.8
|
|
1972
|
31,535.8
|
288.1
|
41,794.3
|
1. This model specification cannot be estimated by using OLS in its current form, explain.
2. Derive the model specification that can be estimated by using the ordinary least squares (OLS) technique.
3. From the specification in "2" derive the expressions for obtaining OLS estimators.
4. Use the data above to derive OLS estimators. Note: Use of statistical or econometric software is not allowed. You are encouraged to use excel and submit your excel file together with your assignment.
5. Find the variances of the OLS estimators.
6. Compute and interpret the R-squared, the t-ratios, and the F-statistic.
7. Test for the existence of constant returns to scale.
8. Test the model for multicollinerity by using the variance inflation factor.
|
Describe the specifics of what was done
: Using personal experience in regard to the quality improvement programs that you discussed in the previous week, which of the following specific quality program tactics were involved?
|
|
How fuel price decrease affected the equilibrium price
: Using the four-step analysis, how do you think this fuel price decrease affected the equilibrium price and quantity of air travel?
|
|
Evaluate the biases that each party might have formed
: From your readings this week and outside research, create a list of seven strategies that Nikki can use during her negotiation with Michelle for dealing with an opponent whose negative emotions are running high and explain how each tactic can be u..
|
|
Determining the success of facebook
: You must also list and briefly describe at least Six economic issues from this course that apply to your topic. These issues may come from the list below or you may use others you've learned in this course:
|
|
Derive the model specification that can be estimated
: ECO 63B Assignment. This model specification cannot be estimated by using OLS in its current form, explain. Derive the model specification that can be estimated by using the ordinary least squares (OLS) technique
|
|
Major advantage does pure cost-benefit analysis
: In making a decision about a proposed policy change, what major advantage does "pure" cost-benefit analysis offer over qualitative cost-benefit analysis? Given this advantage, why might qualitative cost-benefit analysis be used instead of "pure" c..
|
|
What is the justification for given deviations
: What is the justification for the following deviations from recognizing revenue at the time of sale?- Installment sales method of recognizing revenue.
|
|
Write out the equation for the net benefits
: Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) 150 28Q 5Q2 and C(Q) 100 8Q. (Note: MB(Q) 28 10Q and MC(Q) 8.)
|
|
Marginal social benefit and marginal social cost
: The graph below shows the marginal social benefit and marginal social cost of pollution. What is the optimal level of pollution shown on the graph?
|