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1. What is simultaneous biases? Discuss the cause of ednoginity in regression analysis.
2. Explains concisely what is meant by ' the identification problem'' in the context of liner simultaneous equation model.
3.
4. i) Consider the identifiability of each of the equations in the following model
(use rank and order conditions):
where:
C(consumption), I(investment), T (taxation), Y(income) are endogenous variables; G(government expenditure) is exogenous; U, V and W are random disturbance terms.
ii) What problems arise in the interpretation of the coefficient estimates of equations that are not identified?
(iii) Why do simultaneous equations violate the classical assumption of independence between the error term and the explanatory variables?
(iv) What happens if OLS is used to estimate the coefficients of a simultaneous system?
(vii) What is Two-Stage Least Squares? What are the properties of Two-Stage Least Squares?
illustrate and discuss the implications of various market structures (competitive and non competitive) for price determination
Long Run Average Cost (or LAC) -Constant Returns to Scale If the input is doubled, the output will double and average cost is constant at all the levels of output.
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a machine cost 18871.00 today. at the end of each year I own the machine & it gives me returns of 4,948.00 after paying repairs and maintenance. After 6 years, I expect to sell it
ABC ANCA ABNC
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The functions of money include; (1) medium of exchange, (2) store of value, and (3) a calculate of worth. Due to money is acceptable as a form of payment for all commodities,
explain stages and various coordination mechanism involved in policy process
Q=8000-800P
In relation to solvency margins in the insurance industry, the solvency margin is the amount of regulatory capital an insurance undertaking is obliged to hold against unforeseen ev
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