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
compare the price elasticity of demand on two parallel demand curves for a given price and for a given quantity

how might short and long term goals between a business and the government differ?

Give the mathematical formula of calculate the slope of a line?

Outdoor Travel Inc. needs to estimate the cost of capital for the evaluation of capital expenditures. A typical project is financed with 25% debt-to-value ratio (i.e., D/(D+E) = 0.

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

Can you explain the basic introduction of this methodology?

Hi I am currently working on my econometrics coursework which is to replicate a published paper. I was given the same data set as the paper and suppose to get the same answer as th


Consider an equation to explain salaries of CEOs in terms of annual firm sales, return on equity (ROE, in percent form), and return on the firm's stock (ROS, in percent form): L

about t-ratio test under multicolinarity