Based on economic theory, consider a model of a closed economy involving at least three quantifiable variables. Explain the complete procedure for testing and analyzing co-integration relations using JJ and ARDL approaches. Also, explain which model is more suitable for time series analysis.
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Question 2
Based on economic theory, consider a model of a closed economy involving at least three quantifiable variables. Explain the complete procedure for testing and analyzing co-integration relations using JJ and ARDL approaches. Also, explain which model is more suitable for time series analysis.
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- Identify the false statement. a. The productivity increases in manufacturing sector in the USA during the industrial era can be attributed to automation, technology advances, and business process reengineering (BPR). b. In a single-queue, single-server queuing system, if the value of Mu (µ) exceeds the value of lambda (λ), then no queue will form. c. For a single-queue, single-server queuing system, the value of lambda (λ) may exceed that of Mu (µ). d. The SERVQUAL model can be used to assess customer satisfaction based on service quality gaps.the following mundell-fleming model of a small, open economy will be used in all numerical exercises. it assumes a short-run framework in which prices are constant and output is demand-determined. c=150+0.8(y-t) i=500-30r nx=400-150e m/p=50+y-60r r=5 g=300 t=100 m=3000 p=3 the above values of exogenous variables will be referred to as their original values in the questions below. for this question, assume that the exchange rate is floating. derive the equilibrium equations for is* and lm*, sketch a graph of the two equations and solve for the equilibrium values of y, e and nx.the following mundell-fleming model of a small, open economy will be used in all numerical exercises. it assumes a short-run framework in which prices are constant and output is demand-determined. c=150+0.8(y-t) i=500-30r nx=400-150e m/p=50+y-60r r=5 g=300 t=100 m=3000 p=3 the above values of exogenous variables will be referred to as their original values in the questions below. for this question, assume that the exchange rate is floating. derive the equilibrium equations for is* and lm*, sketch a graph of the two equations and solve for the equilibrium values of y, e and nx. b)Suppose the Treasury attempts to stimulate the economy by decreasing taxes T from 100 to 70. Calculate the new values of Y, e and NX. With the help of the graph you sketched in (a), explain the mechanism by which a new equilibrium is reached. answer part b
- the following mundell-fleming model of a small, open economy will be used in all numerical exercises. it assumes a short-run framework in which prices are constant and output is demand-determined. c=150+0.8(y-t) i=500-30r nx=400-150e m/p=50+y-60r r=5 g=300 t=100 m=3000 p=3 the above values of exogenous variables will be referred to as their original values in the questions below. for this question, assume that the exchange rate is floating. Suppose the Treasury attempts to stimulate the economy by decreasing taxes T from 100 to 70. Calculate the new values of Y, e and NX. With the help of the graph you sketched in (a), explain the mechanism by which a new equilibrium is reached.South Africa’s economy is comprised of several different market structures, and these have different implications for welfare, development, employment, competition and economic growth. Using publicly available data, generate two (2) graphs of macroeconomic indicators that would best encapsulate South Africa’s economic performance over the period Jan 2017 to December 2022 for an investor who may be interested in South Africa. Provide a brief explanation of the trends shown in the graphs.A trade policy analyst is planning to assess the relationship between Foreign Direct Investment (FDI) and exports using a panel data of 20 countries over a period of 15 years. Use data from the World Development Indicators for a particular group of countries to determine the nature of the association between the two variables. Write brief notes on the following a) Explain the difference between cross section and panel data. b) Define the variables included in the econometric models and explain the rationale behind the inclusion of each c) Estimate the relationship between foreign direct investment and exports by pooling all the observations.Discuss the limitations of this technique d) Estimate the same relationship in (b) using the fixed effects and random effects model. Interpret your findings in line with the existing literature as to whether FDI and exports are substitutes or complements e) Which model in (c) is more appropriate? Support your answer with the relevant test. f)…
- Explain, using the concept of the elements of model, the statement-“A model is a theoretical structure representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them.O-ring model and big push model sometimes require strong assumptions. What do you think are some of the trade-offs between a more rigorous, logically cohesive model with strong assumptions but clear inferences and a description of problems followed by a verbal discussion of possible implications? Do you think the two approaches can be used together to inform each other?In the analysis of any economic phenomenon, a)spatio-temporal perspective is needed. b)there is a need for a perspective that takes into account the whole and piece relationship. c)there is a need for a historical perspective d)there is a need for static analysis with only one main determinant factor.
- Econometric theory and methodology a. Econometrics is a "non-experimental" research methodology that involves several logical steps in the formulation and estimation of an econometric model. Describe at least 3 steps in the process. (5 Points) (Please solve If you know the answer).Part I. True/False Questions. (1) ______ A linear PMLC model consists of a number of dependent phases that are executed in a sequential order with no feedback loops. (2) _____ The purpose of the planning process group is to develop and gain approval of a general statement of the goal and business value of the project. (3) ______ Estimating the total cost of the work belongs to the launching process group. (4)_______Excellent time management in project management requires the planning, scheduling, monitoring and controlling of all project activities. (5) _______Databases belong to the electronic communications management. (6) _______A requirement is a desired end-state whose successful integration into the solution meets more than one needs and delivers specific, measurable, and incremental business value to the organization. (7) _______Functional requirements specify what the product or service must do. (8) _____The work breakdown structure is a hierarchical description…Organisations use the business analysis maturity model (BAMM) to represent the developmentand maturity of business analysis. The BAMM represents the evolution of the business analyst’srole along two dimensions: Scope and Authority. Q.2.1 Briefly explain what is meant by scope and authority in the BAMM context. Q.2.2 What are the three levels of improvement or maturity during the development ofbusiness analysis?