Estimate the population regression function

Assignment Help Macroeconomics

Reference no: EM131444008

Question: Obtain time series data on real business fixed investment (I) and an appropriate rate of interest (r). Consider the following population regression function:

(a) What are the expected signs of the coefficients in this equation?

(b) Explain your reasoning in each case.

(d) Estimate the population regression function.

(e) Which coefficients are statistically significant? Are the signs those expected?

(f) Construct a 99% confidence interval for the coefficient of rt.

(g) Estimate the log-linear version of the population regression function:

(h) Is the estimated interest rate elasticity of investment significant?

(i) Do you expect this elasticity to be elastic or inelastic, and why?

(j) Perform a hypothesis test of whether investment is interest-elastic.

Reference no: EM131444008

Questions Cloud

Define keynesian consumption function : In the Keynesian consumption function: the estimated marginal propensity to consume is , and the average propensity to consume is Using data on annual income and consumption (both of which were measured in £ sterling) from 200 UK households we fo..

Identify a specific pain point for customers : Fundamentals of innovation and Entrepreneurship GEN302 - Use the design thinking skills that you learned to identify a specific pain point for customers/clients, employees, or both - create a journey map, generate a how might we question, and come u..

Describe the employee benefits at organization : Describe the employee benefits at your organization. What changes, if any, would you like to see made? If you are not able to discuss your current organization, describe what employee benefits would best accommodate both employees and employers at..

Describe the competitive advantage for a company : Two employees perform the same job, and each received exemplary performance ratings. Is it fair to give one employee a smaller percentage merit increase because his pay falls within the 3rd quartile but give a larger percentage merit increase to t..

Estimate the population regression function : Obtain time series data on real business fixed investment (I) and an appropriate rate of interest (r). Consider the following population regression function.

Rachel to the kibbutz community : Jane struggles with her decision to send Rachel to the kibbutz community. She feels as though she is abandoning the ideal of "inclusion". What do you think of "inclusion" and what do you think of Jane's ultimate decision?

Discuss the basic motivational process and the core phases : View this video clip of the film Apollo 13. Enter the pasword orgbehavior to play it.In chapters seven through ten several OB topics were examined. As you review the video, look for incidences that relate to OB concepts that you observe.

Equal employment opportunity commission youth : This site was created after the EEOC observed that the number of harassment claims by teenagers was growing. For example, a Burger King franchisee settled a lawsuit in which teenagers claimed they had been victims of sexual harassment, including g..

Eye of the perfect storm : According to the 2004 National Organization on Disability/Harris survey, described in the case study: In the Eye of the Perfect Storm: Creating Accessibility - IBM, GM, and Cisco, people with disabilities are at a ‘critical disadvantage' compared ..

User Account

All Pages