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Question 1: a) Explain what is a VAR giving an example both in the form of an equation and matrix. Discuss its benefits and limitations. b) How can we estimate a VAR invol
Derive marginal benefit of reducing principal balances
a) Design a simple econometric project to identify the factors that affect the demand for a good or service of your preference. Estimate the significance of these factors using mu
In the United States, a buyer of a new electric is eligible for a one-time federal income tax credit of up to $4,000. Show the effect of this tax credit graphically, assuming the $
Suppose time-series data has been generated according to the following process: where t is independent white noise. Our main interest is consistent estimation of Φ from r
DISCUSS THE CENTRAL ECONOMIC PROBLEM FACING THIS GROUP OF SURVIVORS
Hello I am a PostGrad student. Need some help in the coursework
Currently the stock of Backstreet Toys (BT) is selling for $20 per share and the risk free rate is5%. a) Draw a payoff diagram for each of the following 3 portfolios: i. Buy
Assume that the allowance Peter receives from parents is his only income. He used to spend $30 a month to buy Coke at $.60 per can. Coke is an inferior good for Peter. Further a
volatility
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