Describe the gravity model – specify the variables, use an example of Canada and the USA, or Mexico and the USA – both situations where the gravity model has been found to be accurate
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Describe the gravity model – specify the variables, use an example of Canada and the USA, or Mexico and the USA – both situations where the gravity model has been found to be accurate
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- Ireland and Belgium have very similar trading patterns. Both trades considerably more with the United States than with the European Union (EU), even though they are EU members and are closer to the EU common market than the American market. Explain this anomaly using the gravity model.In economics, what does the term ceteris paribus mean when analyzing the relationship between two variables? A. All other things being equal or held constant B. The direct relationship between two variables C. The inverse relationship between two variables D. The absence of any relationship between two variablesConstruct the cost-of-living index number for 2020 on the basis of 2018 from the given data. Advice a donor agency on what course action to take if the information is meant to help them make a decision on some food stipend being for a social protection program in Kenya. Commodities PRICE Weights 2018 2020 A 200 400 50 B 200 350 40 C 100 150 65 D 80 120 45 E 60 180 20 F 90 157.5 60 G 300 585 100 b. The average prices and quantities of six items grown in Nakuru County are shown in the following table: 2020 2021 Items Price (Kshs/Kg) Quantity (Kg,000) Price (Kshs/Kg) Quantity (Kg,000) Pineapples(A) 10 6 14 8 Oranges(B) 10 8 15 14 Bananas(C) 15 8 20 16 Beans(D) 30 12 25 20 Wheat(E) 40 15 60 21 Millet(F) 50 10 80 16 Using 2020 as base year, compute Kelly’s and Fishers Price index numbers…
- Which are behavioural equations in the model?We have estimated the impact of gross domestic product (GDP), energy consumption (ENERGY) and population (POP) on CO2 emiisions (CO2) in Cyprus. The results are as follows;Dependent Variable: CO2Method: Least SquaresDate: 04/20/17 Time: 09:46Sample: 1990 2013Included observations: 24 Write down the economic function for the above estimation by using the information obtained from above table b- Write down the economic model for the above estimation by using the information obtained from above table . c- Write down the econometric model for the above estimation by using the information obtained from above table d- Write down the least squares line by using the information obtained from above tablee- Explain what each coefficient of the least squares line indicatesProvidence, R.I. has an average January temperature of 28.7 degrees Fahrenheit. What is this average if temp is expressed in Celsius? (Round to two decimal places.) [Hint: Conversion between Fahrenheit and Celsius is a linear transformation: Fahrenheit = Celsius*1.80 + 32, or Celsius = Fahrenheit*(1/1.80) - (32/1.80)] Anchorage, Alaska has an average July temperature of 58.4 degrees Fahrenheit. What is this average if temp is expressed in Celsius? [Hint: Conversion between Fahrenheit and Celsius is a linear transformation: Fahrenheit = Celsius*1.80 + 32, or Celsius = Fahrenheit*(1/1.80) - (32/1.80)]
- Gross Domestic Product The following table givesthe gross domestic product (the value of all goodsand services, in billions of dollars) of the UnitedStates for selected years from 2000 to 2018.a. Create a scatter plot of the data, with y representing the GDP in billions of dollars and x representing the number of years after 2000.b. Find the linear function that best fits the data, withx equal to the number of years after 2000. Reportthe model with three significant digits.c. Graph the model with the scatter plot to see if theline is an excellent fit for the data.Briefly describe the concept of VIF (what is it, why do we use it) and explain how to calculate VIF in a model with 3 independent variables.What is a circular flow model
- The gravity model is frequently used to explain why two countries do not trade. Give examples and causes for this abnormality.QUESTİON 4: Briefly explain Harrod-Domar model. What are the shortcomings of the model? Discuss.Comparing the Chamberlin model with the Cournet model, explain it on the figure.