Long-run static equilibrium solution, Microeconomics

Assignment Help:

(a) What  are the problems associated with R2 and how can adjusted R2 solve them?

(b) If the regressors  in an equation are highly correlated, which measures can be used to solve this problem?

(c) What do you understand by a dynamic model and show all the steps involved in deriving its long-run static equilibrium solution?

(d) Suppose we have a model given by:

    log Qt = 42.95 + 0.387 log Kt +0.613 log Lt
      (1.96)      (3.01)              (2.19)

Where Q is output, K is capital and L is labour. R2 = 0.78, D-W=2.45, number of observation is 35 years and the values in brackets represent t-ratios.


Related Discussions:- Long-run static equilibrium solution

Bains theory, what is bains theory ? describe with the diagram

what is bains theory ? describe with the diagram

Esalstcity of demand and supply, why is the concept of elasticity crucial t...

why is the concept of elasticity crucial to the study of economics?

Determinants of social demand for education, Determinants of Social Demand ...

Determinants of Social Demand for Education Certain levels of education like the secondary school and graduate level are considered as having productive value and are attribut

Measures used to restrict international trade, Measures used to restrict In...

Measures used to restrict International Trade: These are taxes imposed on traded commodities as they cross national boarders. These are two main types of tariffs. An import ta

Describe the different views on development, Problem 1: (a) Explain the...

Problem 1: (a) Explain the common set of problems that developing countries usually face. (b) In your opinion, which of the problems described in part (a), are more signifi

Rationale in era of globalization, Rationale in era of globalisation: ...

Rationale in era of globalisation: In the present era of globalisation where countries have unprecedented access to international capital flows and where those who have borrow

Causes of inflation, Causes of inflation: Excessive growth in wages ...

Causes of inflation: Excessive growth in wages relative to productivity can cause inflationary pressures. This causes aggregate demand to increase relative to aggregate supp

Explain about counter-cyclical policies, Q. Explain about Counter-Cyclical ...

Q. Explain about Counter-Cyclical Policies? Counter-Cyclical Policies:Governments may take many different actions to offset ongoing booms and busts of private-sector economy. T

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd