Explain the inflation rate, Econometrics

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?.

Posted Date: 2/18/2013 12:07:04 AM | Location : United States

Related Discussions:- Explain the inflation rate, Assignment Help, Ask Question on Explain the inflation rate, Get Answer, Expert's Help, Explain the inflation rate Discussions

Write discussion on Explain the inflation rate
Your posts are moderated
Related Questions
My question is that when we use Impulse response function and how to use it. Is it used along with some other methodology. What is the meaning of graphs of IRF?

The following table gives data on the Consumer Price Index (CPI) and the Standard & Poor (S&P) company''s index of 500 common stock prices. Year CPI Index S&P 500 Index 1978 65.2 9

Problem 1: (a) Using examples explain the concept of cointegration. (b) Explain the term ‘stationarity' and its importance. (c) Differentiate between stochastic and determinist

Suppose that the aggregate demand curve in a particular year is given by the algebraic           expression:  Y = 3000 + 1000/P, where Y is the aggregate output and P is t

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

#question.elaborate the different methods for the estimation of simultaneous equation model in case of exact and over identification?