Explain the inflation rate, Econometrics

Assignment Help:

The following regression was estimated to explain the inflation rate in the USA.  The data set contains annual observations from 1970 to 2010.

      Inft  =  2500 +   50*Xt  +   0.4Inflt-1

    se(B)                (5.0)        (0.002)             R2 = 0.92

where Inft is the inflation rate in a given year Xt is the growth in money supply in the same year

a.  Suppose this model represents a Koyck lag structure.  Find the 1st, 5th, and 10th lag coefficients on Xt.

b. If this was a forecasting model, exlpain what  AR(3) and MA(4) models would look like (separate not ARMA)

c.  Now assume you have the same time series data for 4 countries (USA, Canada, England, Japan).  Explain what would a fixed effects model look like, and how would it improve on the basic model?.


Related Discussions:- Explain the inflation rate

Determine the demand functions, The town of Dusty View, Saskatchewan has on...

The town of Dusty View, Saskatchewan has only two residents - Justin and Sarah - and has a water supply shortage in the summer. The municipal water utility charges a break even pri

Coefficient estimators and R squared, Using a sample of 545 full-time worke...

Using a sample of 545 full-time workers, a researcher is interested in the question whether women are systematically underpaid compared to men. First, the researcher estimates aver

Healthcare, How will government regulation impact decision making

How will government regulation impact decision making

What will happen to quantity demanded, a. If 10,000 two-liter bottles of Pe...

a. If 10,000 two-liter bottles of Pepsi are currently being demanded in your community each month, and the price increases from $1.90 to $2.10 per bottle, what will happen to quant

Auto correlation, if there is no autocorrelation what will be done

if there is no autocorrelation what will be done

Detonation equation for this mixture, 1. Consider a mixture of one mole of ...

1. Consider a mixture of one mole of Nitroglycerin and one mole of Ammonium Nitrate a. Write the detonation equation for this mixture b. Using class notes, posted articles in

Estimate the electrons speed, An electron follows a helical path in a unifo...

An electron follows a helical path in a uniform magnetic field of magnitude 0.422T. The pitch of the path is 6.81 mm, and the magnitude force on the electron is 1.59 x 10 -15 N. W

Standard divation, demand for tea, Y, are assumed to be affected by income ...

demand for tea, Y, are assumed to be affected by income of students, X. A simple linear regres-sion analysis was performed on 20 observations and the results were: Independent vari

Quantile regression coefficients, Consider the study of the effect of publi...

Consider the study of the effect of public-sponsored training programs. As argued in public programs of training and employment are designed to improve participant's productive ski

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd