Econometrics
Autor: guoyilin • March 17, 2016 • Course Note • 1,593 Words (7 Pages) • 696 Views
6.14[pic 1]
Model: [pic 2]
Define: [pic 3]
Stata:
reg logvl logw
[pic 4]
The estimated elasticity is 1.333785＝1.3338.
[pic 5]
So the elasticity is not statistically significantly different from 1.
7.20
a.
| 1% + in X | Y (Quit Rate) Change |
X2 | Adult Male Unemployment Rate | - 0.34% |
X3 | Percentage of Employees Younger than 25 | + 1.22% |
X4 | Manufacturing Employment in Quarter t-1 to Quarter t-4 | + 1.22% |
X5 | Percentage of Women Employees | + 0.80% |
X6 | Time Trend | - 0.0055% |
b. Yes, if it is easier for adult males to lose jobs, the quit rate will -.
c. Young workers are more likely to change their jobs, to pursue greater utilities.
d. The wage probably +d by time, the higher the wage, the lower the quit rate.
e. No, because adjusted goodness of fit is a relative indicator.
f. Yes. Because we know the Betas and ts. Deduce the standard errors by [pic 6]
7.21
a.
Model: [pic 7]
Define: [pic 8]
Stata:
gen lnm=log(m2/cpi)
gen lny=log(gdp/cpi)
gen lnl=log(ltrate)
gen lns=log(tbrate)
reg lnm lny lnl
reg lnm lny lns
[pic 9]
The long term rate elasticity is -0.0516, GDP elasticity is 0.4946.
The short term rate elasticity is -0.0255, GDP elasticity is 0.5243.
b.
Model: [pic 10]
Define: [pic 11]
Stata:
gen lnmy=log(m2/gdp)
reg lnmy lnl
reg lnmy lns
[pic 12]
| 1% + in X | M/Y Change |
l | Long Term Interest Rate | + 0.2149% |
s | Short Term Interest Rate | + 0.1073% |
According to R2 the long term rate has a higher one, so it fits better.
7.22
a.
Model: [pic 13]
Stata:
gen lny=log(output)
gen lnk=log(capital)
gen lnl=log(labor)
[pic 14]
| 1% + in X | Y (Output) Change |
K | Capital | + 0.1398% |
L | Labor | + 2.3284% |
The capital parameter is not significant, the labor parameter is significant but this is not real. Because the parameters in Cobb-Douglas Function could not be larger than 1. But in this model the R2 and F are very high, there might be multicollinearity.
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