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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.
Females, it is said, make 70 cents to the dollar in the United States. To investigate this phenomenon, you collect data on weekly earnings from 1,744 individuals, 850 females and
Process of least cost method and how to do a minimisation problem
Why use auxiliary regression? What are the benefits of using it?
Greenstone Coffee is experiencing financial pressures due to increased competition for its numerous urban coffee shops. Total sales revenue has dropped by 15% and the company wishe
question number one
what is role of education in economic development?
It was shortly before noon. Mr. Zhi-Long Chen, director of Overnight Delivery Operations at Capital Crab and Lobster, Inc.(CCL) in Washington DC, anxiously watched the Weather Chan
(a) Estimate how much more or less workers on average earn when they work for government as opposed to private sector, holding their characteristics constant. Interpret the finding
effect on of multicollinearity.
Let W be a random variable such that Supp (W) = {2, -1, 0, 1, 2 } and What is p? Define U = W 2 . What is Supp (U) and fU (u) = Pr [U = u] for u ∈ Supp (U)? Compute E [W] a
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