How to deal with heteroscedasticity and autocorrelation

Assignment Help Microeconomics
Reference no: EM131289899

Economics

Word Limit 2500 words (excluding appendix and reference list)

Refer to the Journal Article Attached as a guide on how to report the results of the data analysis.

Use SPSS OR STATA as the preferred software for data analysis.

Please RESPOND if you can comfortably handle this paper. Jokers and time for trial and error is not allowed!!

FURTHER INSTRUCTIONS

1. You can use the rate of return that you find more appropriate. You might want to justify your choice. We have seen many time in the lectures and tutorials how to compute a percentage change of a variable. You can find more information here https://en.wikipedia.org/wiki/Rate_of_return.

2. By the end of the course we will have considered three different diagnostic tests: tests for normality, homoscedasticity and no-autocorrelation (last lecture) of the residuals. We shall have learnt how to deal with heteroscedasticity and autocorrelation.

3. Please assume that the variables in model (1) and (2) are stationary; you don't to test for stationarity.

4. There is no need to transform FED to run the regression; just keep in mind that FED is annualized when you interpret the results.

5. No particular structure of the assignment is required. Please answer each question precisely and concisely. The 2,500 words limit is an upper bound, there is no lower bound (no minimum amount of words).

6. In question 2, you are referred to the paper by C. Ioannidis and A. Kontonikas (2008), "The impact of monetary policy on stock prices", Journal of Policy Modelling 30, 33-53. The paper might be helpful as a general reference to complete the assignment.

7.Strictly use E-views software in this assignment.

Attachment:- Attachments.rar

Reference no: EM131289899

Questions Cloud

Discuss the stages of the consumer buyer decision process : Discuss the stages of the consumer buyer decision process and describe how you or your family used this process to make a purchase.
Team ways to check for vulnerabilities : You have provided the team ways to check for vulnerabilities, but now the team is requesting information on how intruders gather information to exploit these vulnerabilities and the best way to prevent exploitations.
How can marketers use behavioral segmentation : How can marketers use behavioral segmentation in consumer markets? Discuss, using an example for each method of behavioral segmentation.
How marketers use local marketing and individual marketing : Compare and contrast consumer market segmentation and business market segmentation.- How do marketers use local marketing and individual marketing?
How to deal with heteroscedasticity and autocorrelation : We will have considered three different diagnostic tests: tests for normality, homoscedasticity and no-autocorrelation of the residuals. We shall have learnt how to deal with heteroscedasticity and autocorrelation.
Calculate the total horizontal load per unit width : Calculate the total horizontal load per unit width and the location of the center of pressure measured from the bottom.
How can a company gain competitive advantage : How can a company gain competitive advantage through differentiation? Describe an example of a company that illustrates each type of differentiation discussed in the chapter.
Transmits the damaged frames in most networks : Data link layer transmits the damaged frames in most networks. If the probability of a frame being damaged is p, what is the mean number of transmissions required to send a frame if acknowledgements are never lost?
Research augmented reality on the internet : Research "augmented reality" on the Internet. Discuss the most appropriate variables for segmenting the consumer market for products based on this technology.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Sppose demand and supply are given by qd 50 - p and qs

suppose demand and supply are given by qd 50 - p and qs frac12 p - 10.a. what are the equilibrium quantity and price

  What evidence does he use to support that contention

Goldin notes that the high school movement was unevenly distributed the United States. What years in American history describe the "high school movement"? What areas of the country led the high school movement and what speciÖc reasons does Goldin ..

  Examine the control cost estimates

Examine the control cost estimates, and pro- vide a plausible explanation of why there are incremental costs differences across regions for meeting the PM standard.

  How do fixed costs play the role in the analysis write down

say you are the manager of a perfectly competitive firm selling a product. your business is making a loss because total

  Discuss the following questions with your colleagues

discuss the following questions with your colleagues. independent research will be necessary and be sure and provide

  This firm''s average costs

A firm that emerges as the only seller in an industry with economies of scale is a(n): The profit maximizing rule MR = MC applies to: Suppose that the total cost curve for a firm is given by the equation TC = a + bQ, where 'a' and 'b' are positive nu..

  How will this affect the unemployment rate in the short run

Suppose there is a reduction in income taxes. How will this affect the unemployment rate in the short run and the medium run? How about the real wage? For a given worker, how will after-tax income be affected?

  Determine the relevant costs for the expansion decision

From the scenario for Katrina's Candies, determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs.

  The proponents of rational expectations believe that

The proponents of rational expectations believe that: There will be a substantial time lag before people anticipate the eventual effects of a shift to a more expansionary macro-policy. Macro-policies that stimulate demand and place upward pressure on..

  Calculate national saving

Consider a small open economy with desired national saving of S = 20 + 200r* and desired investment of I = 30 - 200r*.a. Calculate national saving(S), investment(I), and the current account balance(NX or CA) in equilibrium when the real world interes..

  Discuss the effect of outsourcing of production on gdp

After viewing the video multimedia resources, reflect on the challenges facing the U.S. labor force due to outsourcing of jobs overseas.

  Show the effect of an increase in government purchases

If the size of the expenditure multiplier is a = 2, show the effect of an increase in government purchases by DG = 200 on income and the interest rate.

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