Chat with AI
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609 Exercise 16
Use the data set CONSUMP.RAW for this exercise.
(i) Estimate a simple regression model relating the growth in real per capita consumption (of nondurables and services) to the growth in real per capita disposable income. Use the change in the logarithms in both cases. Report the results in the usual form. Interpret the equation and discuss statistical significance.
(ii) Add a lag of the growth in real per capita disposable income to the equation from part (i). What do you conclude about adjustment lags in consumption growth
(iii) Add the real interest rate to the equation in part (i). Does it affect consumption growth.
(i) Estimate a simple regression model relating the growth in real per capita consumption (of nondurables and services) to the growth in real per capita disposable income. Use the change in the logarithms in both cases. Report the results in the usual form. Interpret the equation and discuss statistical significance.
(ii) Add a lag of the growth in real per capita disposable income to the equation from part (i). What do you conclude about adjustment lags in consumption growth
(iii) Add the real interest rate to the equation in part (i). Does it affect consumption growth.
Explanation
Verified
Verified
(i)
Estimate the simple regression model...
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
