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Consider the following model:
Y*i= β0Xt β1eUt
a) Using the stock adjustment model, estimate the short-run and long-run elasticities
b) Comment on the following processes : i) Autoregressive ii) Distributed lag
c) How is a fixed effect model (FEM) different from an error components model (ECM)?
d) How do we test for "ARCH Effects"?
e) Briefly comment on two information criteria for model selection
How is supply related to opportunity cost?
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