Long-run static equilibrium solution, Microeconomics

Assignment Help:

(a) What  are the problems associated with R2 and how can adjusted R2 solve them?

(b) If the regressors  in an equation are highly correlated, which measures can be used to solve this problem?

(c) What do you understand by a dynamic model and show all the steps involved in deriving its long-run static equilibrium solution?

(d) Suppose we have a model given by:

    log Qt = 42.95 + 0.387 log Kt +0.613 log Lt
      (1.96)      (3.01)              (2.19)

Where Q is output, K is capital and L is labour. R2 = 0.78, D-W=2.45, number of observation is 35 years and the values in brackets represent t-ratios.


Related Discussions:- Long-run static equilibrium solution

Microeconomics, Five identical people live in a small town and can earn a l...

Five identical people live in a small town and can earn a living either by having cattle $100 or by becoming a singer. If one person competes their expected payment is 210, if two

Production, introduction of production

introduction of production

Production Possibility Curve, Explain the micro and macro economic issues t...

Explain the micro and macro economic issues that can be represented on the PPC

Supply, concept of supply

concept of supply

Calculate the elasticity of pollution demand, 1.  The marginal benefit (dem...

1.  The marginal benefit (demand) curve for pollution for an industry is P=100-4*Q, where Q is emissions in tons.  The current emissions tax (price) for pollution is $40/ton.  Regu

Arbitrage pricing theory, Arbitrage Pricing Theor y Arbitrage ...

Arbitrage Pricing Theor y Arbitrage defines the procedure of continuously buying a security for privacy, currency, or commodity on one market and selling it in another

Monopoly, if the inverse demand curve is p=120-Qand the marginal cost is co...

if the inverse demand curve is p=120-Qand the marginal cost is constant at 10, how does charging the monopoly a specific tax of 10 per unit affect the monopoly optimum and the welf

Monopoly, Monopoly: Monopoly is a market structure in which there is a...

Monopoly: Monopoly is a market structure in which there is a single firm producing a commodity or providing a service that has no close substitutes. As the sole supplier to it

Participation rate, Participation Rate:Proportion of working-age individual...

Participation Rate:Proportion of working-age individuals who decide to ‘participate' in the labour force, by either being employed or actively seeking work. Precise definition of w

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