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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.
Students in the red/black card game had to make individual deals. How would the situation change if they could bargain collectively?
explain the method with an example
what model should i use for economic services and how to run spss for the same?
given the formula for f statistic prove that by using the f statistic you can derive this formula
Gretl help?
usefulness of time series in a business with a detailed explanation
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
hypothetical data on consumption expenditure ($) and income ($) is given in the table x Y 80 55 100 65 85 70 110 80 120 79 115 84
Consider a Simple Linear Regression Model (SLRM) of the form y= a1+a2X+e where e ~ N(0,σ 2 )(Use the assumptions outlined in our class and available for review in the lecture note
You are a property insurer and one of your potential clients, whose current wealth is $450,000, wants to insure her $250,000 house. The chances of the house burning down in any gi
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