Customer Service Chat
Get quote & make Payment
Nonlinear specification and dummy variables, Econometrics
Suppose you have a model of capital investment by a U.S. rm. Imagine that yt, x1t
and x2t are annual measures of investment, lagged prot, and lagged capital stock,
all in real dollars. The sample data contains the years 1935-1954. The model can be
yt = 0 + 1x1t + 2x2t +
Dt + "t ; (1)
where Dt is the dummy variable allowing to distinguish between war and non-war
1 if year=1939,...,1945
Let us dene a second dummy variable
Ct = 1 ?? Dt
and suppose that in fact we did not run the model (1), but another model (refer to
it as model (2)), where we included both dummies Dt and Ct.
(a) Is there something we should exclude from the model (2) if we want it to be
(b) Suppose that we have the following table of results:
Model (2) (3)
Intercept ? ?
D ? (18:099
C ? ??(10:190
x1 ? ( 0:028
x2 ? (0:163
Can you replace the \?" signs in the table? You can use the information that
the covariance matrix of parameters estimate in model (3) is
D C x1 x2
D 126.8591 114.424 -0.0529091 -0.0290572
C 137.3539 -0.052448 -0.0578449
x1 0.00002845202 -0.0000036976
Posted Date: 11/16/2012 5:45:03 PM | Location : Czech Republic
Ask an Expert
Nonlinear specification and dummy variables, Assignment Help, Ask Question on Nonlinear specification and dummy variables, Get Answer, Expert's Help, Nonlinear specification and dummy variables Discussions
Write discussion on Nonlinear specification and dummy variables
Your posts are moderated
Write your message here..
David the most interest, David has £5000 that he wishes to save for ...
David has £5000 that he wishes to save for six years. Bank A offers him an interest rate of 4% per annum compounded monthly. Bank B offers him an interest ra
#simultaneously, #question.Suppose that you have 150 observations on produc...
#question.Suppose that you have 150 observations on production (yt) and investment (it), and you have estimated the following ADL(3,2) model: (1 – 0.5L – 0.1L2 – 0.05L3)yt = 0.7 +
Q1, how to find the relationship for a simple linear model?
how to find the relationship for a simple linear model?
Auto correlation, if there is no autocorrelation what will be done
if there is no autocorrelation what will be done
How to model my variables into a probit, I am beginning my thesis and I nee...
I am beginning my thesis and I need some advice. I am trying to estimate a probit model. The binary dependent variable is employment status and the independent variables include:
Calculate the equilibrium level of aggregate, Given for a closed economy: ...
Given for a closed economy: C = $20 + 0.50Y D I = $40 G = $10 Y D = Y- T 0 T 0 = $5 Determine: (a) the equilibrium
Various functions of money, various functions of money
various functions of money
Explain regression model, In a study relating college grade point average t...
In a study relating college grade point average to time spent in various activities, students are asked how many hours they spend each week in four activities: studying, sleeping,
Assignment question .., Process economics questions for assignment
Process economics questions for assignment
Multicollinearity, if there is multicollinearity so why we can not estimate...
if there is multicollinearity so why we can not estimate the value of parameters?
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.