In this case, the Granger causality statistic does not exceed the critical value, and hence the conclusion is that the change in the inflation rate does not Granger-cause the unemployment rate. t = 0.05 - 0.31 ΔInft-1
(0.14)(0.07)
t = 1982:I - 2009:IV, R2 = 0.10, SER = 2.4
a. Calculate the one-quarter-ahead forecast of both ΔInf2010:I and Inf2010:I (the inflation rate in 2009:IV was 2.6 percent, and the change in the inflation rate for that quarter was -1.04).
b. Calculate the forecast for 2010:II using the iterated multiperiod AR forecast both for the change in the inflation rate and the inflation rate.
c. What alternative method could you have used to forecast two quarters ahead? Write down the equation for the two-period ahead forecast, using parameters instead of numerical coefficients, which you would have used.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q36: Purchasing power parity (PPP), postulates that
Q37: Assume that you have used the OLS
Q38: Volatility clustering
A)is evident in most cross-sections.
B)implies that
Q39: Carefully explain the difference between forecasting variables
Q40: What role does the concept of cointegration
Q42: Consider the following model Yt =
Q43: For the United States, there is somewhat
Q44: You have re-estimated the two variable VAR
Q45: There has been much talk recently
Q46: You have collected quarterly data for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents