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Suppose a researcher is interested in estimating the impact of gasoline taxes (Xi) on per capital gallons of gasoline consumer per year(Yi).Assume tax is measure in cents per gallon. the researcher has data from 51 states for a 10 year period for a total of 510 observations. the researcher estimates the linear OLS model Y(i)=beta0+beta1Xi+&i and calculates beta1=-0.90.
suppose instead of measuring taxes in cents per gallon, the researcher measures taxes in dollars per gallon, the researcher measures taxes in dollars per gallon where the new model is Yi=r0+r1Xi*+&i and X*=X/100.what will be the estimate on the coefficient on r1?show mathematical derivation.
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 5%, the growth rate of the velocity of money is 4% and that the real economic growth rate i..
Political Instability Abroad Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more U.S assets. Refer to Political Instability Abroad. What would t..
Momentum treatise to the current world population growth crisis.
estimating elasticity of demand please respond to the followingfrom the e-activity analyze the elasticity of demand for
Is it possible to trade foreign exchanges in the future markets? How does such trading differ from the forward market?
In 2013, the furniture store PB produced 10 mahogany desks. One of them is sold to Jeanine for $3,259, later that same year Jeanine sold the desk to Pamela for $1,802. The remaining desks were not sold to anyone that year and stay in PB's inventory a..
What economic example could be used to demonstrate incentives that were used to "nudge" buyers/sellers
a copy company wants to expand production. it currently has 20 workers who share eight copiers. two months ago the firm
From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $12 million in withdrawals from other banks’ ATM machines. On average, noncust..
The following graph gives the long-run aggregate-supply curve (LRAS), the short-run aggregate-supply curve (AS), and the aggregate-demand curve for a particular economy. To return the economy to its natural rate, the Fed could_____ government bonds.
A movie theatre has a cost function which entails the rent of the commercial building of $50 per day (fixed cost) and a marginal cost of $5 per viewer. Assume now that the movie theatre can give price discounts to students. Explain the concept of pri..
Why does the assumption of independence of risks matter in the examples of insurance.
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