The following model was specified to investigate the relationship between mineral exploitation and energy consumption in a small state over 1970-2006: ln(mining)t= β0 + β1ln⁡(GDP_m)t + β2ln(exports)t + β3ln⁡(energy)t + et where mining = the output of the mining and quarrying industry (constant 2000 US dollars); GDP_m = GDP less mining and quarrying industrial output (constant 2000 US dollars); exports = exports (constant 2000 US dollars); and energy = energy consumption (million kilowatts hours). OLS estimation of the preceding equation yields ln(mining)t=-5.76+0.81ln⁡(GDP_m)t+0.21ln(exports)t-0.09ln⁡(energy)t t-stat = (-3.82) (12.76) (3.53) (-2.49) p-value = (0.001) (0.000) (0.001) (0.017) R2=0.8905 n = 37 Durbin-Watson stat = 0.98 d) Interpret the coefficient on ln(energy). e) Are coefficients’ signs on explanatory variables within your expectation? Answer this question with a brief explanation. - f) The researcher suspect that export and energy are jointly insignificant. Describe step-by-step procedure the researcher should carry out to determine if the variables are jointly insignificant.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Question

The following model was specified to investigate the relationship between mineral exploitation and energy consumption in a small state over 1970-2006:

ln(mining)_t= β₀ + β₁ln⁡(GDP_m)_t + β₂ln(exports)_t + β₃ln⁡(energy)_t + e_t

where mining = the output of the mining and quarrying industry (constant 2000 US dollars);

GDP_m = GDP less mining and quarrying industrial output (constant 2000 US dollars);

exports = exports (constant 2000 US dollars); and

energy = energy consumption (million kilowatts hours).

OLS estimation of the preceding equation yields

ln(mining)_t=-5.76+0.81ln⁡(GDP_m)_t+0.21ln(exports)_t-0.09ln⁡(energy)_t

t-stat = (-3.82) (12.76) (3.53) (-2.49)

p-value = (0.001) (0.000) (0.001) (0.017)

R²=0.8905 n = 37 Durbin-Watson stat = 0.98

d) Interpret the coefficient on ln(energy).

e) Are coefficients’ signs on explanatory variables within your expectation? Answer this question with a brief explanation.

f) The researcher suspect that export and energy are jointly insignificant. Describe step-by-step procedure the researcher should carry out to determine if the variables are jointly insignificant.

Expert Solution