Economics 4. What is meant by an error components model (ECM)? How does it differ from FEM? When is ECM appropriate? And when is FEM appropriate?
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- QUESTION 6 Which one of the following statements about the modified Stackleberg model is correct? A. None of the other statements is correct. B. Entry accomodation is always more profitable than entry deterrence. C. Whether entry deterrence is more profitable than entry accomodation can depend on the size of the fixed cost. D. Entry deterrence is always more profitable than entry accomodation.(Econmetrics) Q.1 How can you test for general misspecification of model if it would have only (any of) two independent variables?1.In what cases is the logit/probit model used? example? 2. In what cases is the ordered logit/probit model used? Example? Please provide detail answer, i need it to review for my test. Thank you in advanced!
- ( TRUE OR FALSE help me find the true or false questions ) 1. In economic statistics and Econometrics, we do the same thing.( ) 2. As same in regression analysis, variables in relation analysis are all random variables.( ) 3. Known as residual, "i is an estimate of u , the random disturbance term.( ) 4. The slope coefficient of the log-log model measures the elasticity of Y with respect to X.( ) 5. In regression of standardized variables, the intercept term is always zero.( ) 6. The underlying theory may suggest a particular functional form.( ) 7. The disturbance term u is assumed to follow normal distribution.( ) 8. White test is used to check if there exists multicollinearity in the disturbance term of a regression function.( ) 9. Dummy variable can be used to test the stability of a regression model just as the function of the Chow Test.( ) 10. Where there is autocorrelation in the u , the OLS estimators are not BLUE estimators any more.( )Using Y as the dependent variable and X1, X2, X3, X4 and X5 as the explanatoryvariables, formulate an econometric model for data that is (i) time series data (ii)cross-sectional data and (iii) panel data – (Hint: please specify the specific model herenot its general form).Suppose that the government tends to maximize the tax revenue. How would the cannabis price drop affect the government tax revenue if cannabis was taxed by price? Did the government anticipate the cannabis price drop when designing the tax scheme? You may come up with an artificial numerical example to support your findings. are alcohol and cigarettes substitutes or complements of cannabis?(The answer to this question depends on the actual consumption data. If you do not know the data, you may make an assumption. Then, you should stick with this assumption for the rest of your analysis. For example, if you assume that alcohol and cigarettes are substitutes of cannabis, then your entire analysis is based upon this assumption.) How would the change in the price of cannabis possibly affect the market demand curve for alcohol/cigarettes?
- Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation?Which is not a phenomenon studied under econometrics? (a). Consumption pattern.(b). Consumer behavior.(c). Production and cost.(d). Supply.What is BLUE..? (a). Best Linear Unbiased Estimator.(b). Biased Linear Unit Estimator.(c). Bohr’s Linear Unbiased Estimator.(d). Best Linear Unit Estimator.Need the correct answer urgently! Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.tate whether the following statements are true or false with a brief explanation: a) Logit model is estimated by minimising the sum of the squares residuals of the model. b) In difference-in-differences analysis, the assumption of ‘parallel trends’ is generally testable. c) Suppose you have estimated a model Y = 0.2 – 0.7D + 2X + 0.4X*D. Y and X are continuous variables and D is a dummy variable. If D=1, the marginal effect of X on Y is always larger, and therefore the predicted Y is always larger, than in the case where D=0. d) The first order autoregressive model can be stationary or non-stationary. e) The bias in Instrumental Variables estimator depends on the number of observations.
- What can be done lower errors in econometrics modelsTwo differences between the prediction of the model with myopic agents and the predictions of the model with forward looking agents?Consider the following Model (notation is standard):C=c(y-τ) I=i(r) y = C+I+G Md/P = L(y, r) Md= Ms=My = f(n) n = h(W/P) f´(n) = W/P Calculate the effects of a change in τ on C, I, r, y and P.