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Question 1:
a) Explain what is a VAR giving an example both in the form of an equation and matrix. Discuss its benefits and limitations.
b) How can we estimate a VAR involving equations having a contemporaneous feedback term?
c) Distinguish between variance decomposition and impulse response functions.
Question 2:
(a) What are the two types of non-stationarity that exist and show how one of them can be made stationary?
(b) How do we test for a unit root?
(c) What does it mean when two variables are cointegrated?
(d) Using the Engle-Granger approach show how parameters can be estimated in cointegrated systems.
how to remedial of multicollinearity??
PROOF THAT E(XU) DIFFERENT FROM ZERO.
Discuss the descriptive statistics of total government expenditures and per capita government expenditures. Plot their histograms and comment.
Suppose years of schooling, s , is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by w m = 500 + 100 s and
What is the rival principle of distribution? What are the impacts of ethics and morals on the rival principles of distribution?
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,
The equilibrium conditions for three related markets are given by: (a)Write this system of equations in matrix notation of the form Ax = B. (b) Find the determinant
diff between Mrs and Mrts
Gruen&Pagan(1999) "The Phillisp Curve in Australia" identified that NAIRU is non-constant over the period. Provide an econometrics evaluation of the claim that NAIRU is non constan
(b) Suppose that the initial conditions are as follows: y0 = 0 and et = 0 for t= 0. Impose the initial conditions in order to find the general solution.
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