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Perform a logarithmic regression of expenditure on your category of consumer expenditure on income and price using an AR(1) estimation technique. Perform a second regression with the same variables but adding the lagged variables as regressors and using OLS. With an h test, check that the second specification is not subject to autocorrelation .Explain why the first regression is a restricted version of the second, stating the restrictions, and check whether the restrictions appear to be satisfied by the estimates of the coefficients of the second regression. Perform a common factor test. If the AR(1) model is rejected, and there are terms with insignificant coefficients in the second regression, investigate the consequences of dropping them.
John earned $100,000 last year and paid $10,000 in income taxes. Mark earned $50,000 last year and paid $5,000 in income taxes. This is an example of what principal of taxation?
what will happen to equilibrium quantity od peanut butter traded in the market after the 30% increase in the price of peanut butter? stay the same, increase, decrease, or not enough information to tell what will be the expected change in the quant..
The income elasticity of demand for clothing is estimated at +0.5. What would you expect to happen to clothing revenues when incomes are rising When incomes are falling Is the effect stronger or weaker than the movie industry results
Three planks are connected as shown by bolts of 14-mm diameter spaced every 150 mm along the longitudinal axis of the beam. For a vertical shear of 10 kN, determine the average shearing stress in the bolts.
What were nominal interest rates in Britain and the euro zone after 1998? How would Britain have fared if the ECB had been setting Britain's nominal interest rate at the euro zone level and the pound sterling's euro exchange rate had been fixed?
Weekly demand and cost relations for Sandpiper Products, Inc., are given by the equations P = $180 - $10Q (Demand) TC = $75,000 + $5Q + $7.5Q2 Where Q is the quantity produced and sold per week.
The production function F(L) = 6L^(2/3). Suppose that the cost per unit of labor is $8 and the price of output is 4, how many units of labor will the firm hire?
Consider the production function f(L;K) = L + K. a. Suppose K is ?xed at 2. Find algebraic expressions for the total product of labor function TP(L), the average product of labor AP(L), and the marginal product of labor MP(L).
Give two examples of economic issues that are primarily microeconomic and two examples that are primarily macroeconomic. What is the general difference between microeconomics and macroeconomics?
Your marginal cost for producing a Hair Grow pill is $1. What is the profit-maximizing price and quantity? What is your profit? Suppose your production facility can only produce 1,000,000 pills. What is your optimal price and quantity given the ..
The demand for personal computers has been estimated to be Q = 500,000 - 700P +200I - 500S. Assume that per capita income I is $13,000 and the average price of software S is $400. When the price of personal computers is P=$3000,
Consider two economies with identical technologies and identical initial conditions but with different corporate tax rates, τ and τ' . Determine the relative income of these two economies (as a function of time).
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