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1. What is simultaneous biases? Discuss the cause of ednoginity in regression analysis.
2. Explains concisely what is meant by ' the identification problem'' in the context of liner simultaneous equation model.
3.
4. i) Consider the identifiability of each of the equations in the following model
(use rank and order conditions):
where:
C(consumption), I(investment), T (taxation), Y(income) are endogenous variables; G(government expenditure) is exogenous; U, V and W are random disturbance terms.
ii) What problems arise in the interpretation of the coefficient estimates of equations that are not identified?
(iii) Why do simultaneous equations violate the classical assumption of independence between the error term and the explanatory variables?
(iv) What happens if OLS is used to estimate the coefficients of a simultaneous system?
(vii) What is Two-Stage Least Squares? What are the properties of Two-Stage Least Squares?
4) The prevention of major swings in economic activity can be handled most easily by the A. household sector B. business sector C. financial sector
The following are AC and TC functions for various firms (i). AC = 140/Q + 20 (ii) AC - a/Q = k (iii) TC - 10 =2Q + 0.1Q 2 (iv) TC - k - βQ = cQ 2 Where a, k, β and
objestive of williamson modle
1. Select a data series that you wish to forecast. Make sure that it has some importance to you relative to business, future occupation or other special interest. Obtain monthly or
assingnment on production cost
1. On Wednesday the 16 th , 2008 an enormous avalanche knocked out the lines that transmitted electricity from a hydroelectric dam to Juneau, Alaska. This eliminated Juneau's prima
The demand for soft drinks has been estimated asQx 20PX 0.25PY0.45M 2 Determine the own, cross and income price elasticities of demand. Interpret your results.
Evaluation of the WTO: The WTO is different from and an improvement over the GATT in the following respects: • The WTO is more global in its membership. • The WTO ha
Survey Methods: The most direct method of forecasting demand in the short run is survey method. Surveys are conducted to collect information about future purchase plans of the
#what is exceptional supply curve
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