Reference no: EM13881840
nergy prices and capital formation: United States, 1948-1978. To test the hypothesis that a rise in the price of energy relative to output leads to a decline in the productivity of existing capital and labor resources, John A. Tatom estimated the following production function for the United States for the quarterly period 1948-I to 1978-II*:
ln ( y/k) = 1.5492 + 0.7135 ln (h/k) - 0.1081 ln (Pe/P) (16.33) (21.69) (-6.42)+ 0.0045t R2 = 0.98 (15.86)
where y = real output in the private business sector
k = a measure of the ?ow of capital services
h = person hours in the private business sector
Pe = producer price index for fuel and related products
P = private business sector price de?ator
t = time.
The numbers in parentheses are t statistics.
a. Do the results support the author's hypothesis?
b. Between 1972 and 1977 the relative price of energy, (Pe/P), increased by 60 percent. From the estimated regression, what is the loss in productivity?
c. After allowing for the changes in (h/k) and (Pe/P), what has been the trend rate of growth of productivity over the sample period?
d. How would you interpret the coef?cient value of 0.7135?
e. Does the fact that each estimated partial slope coef?cient is individu- ally statistically signi?cant (why?) mean we can reject the hypothesis that R2 = 0? Why or why not?
|
How is humor infused in the stories about death and rebirth?
: How is humor infused in the stories about death and rebirth?
|
|
Describe what a po and io would look like
: Consider a $ 100 million pool of conventional mortgages paying 8 percent interest. Suppose that you create one PO and one IO for this entire pool. Describe what a PO and IO would look like for this mortgage pool.
|
|
Canseco plumbing fixtures purchased equipment
: 1.On January 1, 2013, Canseco Plumbing Fixtures purchased equipment for $30,000.
|
|
Determine the number of possible rate of return values
: Determine the number of possible rate of return values in the net cash flows series using the two sign tests. Find the external rate of return by spreadsheet using the ROIC approach with an investment rate of 12% per year.
|
|
Do the results support the author hypothesis
: Between 1972 and 1977 the relative price of energy, (Pe/P), increased by 60 percent. From the estimated regression, what is the loss in productivity?
|
|
Residual value were changed
: 1.At the beginning of 2011, Robotics Inc. acquired a manufacturing facility for $12 million.
|
|
Why do large banks organize themselves this way
: Large banks often borrow heavily in the federal funds market and maintain small investment portfolios relative to their asset size. Are these offsetting risk positions? Why do large banks organize themselves this way?
|
|
The greatest challenge facing law enforcement
: Explain, in detail, what you believe to be the greatest challenge facing law enforcement agencies investigating exploitation, cyber stalking, and obscenity. Provide a rationale for your response.
|
|
Calculate the pw value for interest rates in the given range
: Find all rates that are real numbers between _25% and _50%, and calculate the PW value for interest rates in this range. Indicate which is the best and correct i * value to use in a PW analysis.
|