Reference no: EM1346419
Use the GRETL data set kmenta.gdt to estimate the structural equations:
Qd=βo+β1P+β2D+£1
And
Qs=Øo+Ø1P+Ø2F+£2
where Q is food per capita (quantity); P is the ratio of food price to a cost of living index; D is Disposable income; F is a measure of cost, deflated food prices paid to consumers.
A. Is the demand equation, Qd, under, over, or exactly identified?
B. Is the supply equation, Qs, under, over, or exactly identified?
C. With a Hausman test, determine if assumption A5 holds for the demand equation.
D. With a Hausman test, determine if assumption A5 holds for the supply equation.
E. Using two-stage least squares, estimate the demand equation in GRETL.
F. Using two-stage least squares, estimate the supply equation in GRETL.
G. Print your results from A, B, E, and F is a comparison table.
H. For supply and demand, which equations, OLS or two-stage, which estimation technique has the most desirable properties?
|
Explain the concept of more is better satisfied for both
: Explain the concept of more is better satisfied for both goods. Elucidate as C increases the MUC increase, decrease or remain constant.
|
|
A sales manager receives six telephone calls on average
: A sales manager receives six telephone calls on average between 9.30 a.m. and 10.30 a.m. on a weekday. Find the likelihood that Poisson
|
|
Show the business communications situation
: The business communications situation and the way communication occurred in the pre-technology setting
|
|
Give the initial temperature of the hot horseshoe
: An airplane has a mass of 2.6 x10^6 kg, and the air flows past the lower surface of the wings at 95m/s. If the wings have a surface area of 1200m2, how fast should the air flow over the upper surface of the wing if the plane is to stay in the air?..
|
|
Estimate the demand equation in gretl
: Using two-stage least squares, estimate the demand equation in GRETL. Using two-stage least squares, estimate the supply equation in GRETL.
|
|
Discourse whether the law should be the sole guide
: Discourse whether the law should be the sole guide for whether such actions can occur, Explain why is the law sometimes not enough
|
|
Define the magnitude of the charge on each sphere
: A 1000 kg experimental rocket sled on a level frictionless rail is loaded wiht 50kg of propellant. It exhausts the propellant in a 20-s "burn". If rocket, initially at rest, moves at 150m/s after the burn, what impulse is experienced by the rocket..
|
|
Explain what strategies would you use to maintain a caring
: Explain what strategies would you use to maintain a caring, sensitive tone, even when writing a negative message?
|
|
Which performances as the project plan for organizing
: Submit a MS Project file which performances as the project plan for organizing this two day training session
|