A what are the problems associated with r2 and how can, Ask an Expert

Economics

(a) What are the problems associated with R² and how can adjusted R² solve them?

(b) If the regressors in an equation are highly correlated, which measures can be used to solve this problem?

(c) What do you understand by a dynamic model and show all the steps involved in deriving its long-run static equilibrium solution?

(d) Suppose we have a model given by:

log Q_t = 42.95 + 0.387 log K_t +0.613 log L_t
(1.96) (3.01) (2.19)

Where Q is output, K is capital and L is labour. R² = 0.78, D-W=2.45, number of observation is 35 years and the values in brackets represent t-ratios.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9585967

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question currently the law prevents courts or police from

Question: Currently, the law prevents courts or police from releasing information about the criminal records of people under 18 years old. Members of certain minorities are more likely than other persons to have had prob ...

Question show the market for cigarettes in equilibrium

Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...

Question 1 consider the rothschild-stiglitz adverse

Question: 1. Consider the Rothschild-Stiglitz adverse selection model that we discussed in the class. Suppose a competitive insurance company proposes an insurance policy that provides full insurance to all individuals, ...

Question 1 what motivations are assumed to underlie the

Question: 1. What motivations are assumed to underlie the "public interest" and the "economic" theories of legislation (self-interest paradigm)? 2. Must a theory be accurate 100 percent or even 80 percent of the time to ...

Question unemployment rate is expected to drops to 44

Question: Unemployment rate is expected to drops to 4.4 percent. Using Aggregate Demand/Aggregate Supply (AD/AS) model show the impact on real output and price level when there is: A. Drop in unemployment rate B. Higher ...

Question if a canadian tourist drinks german beer in a

Question: If a Canadian tourist drinks German beer in a Cleveland restaurant, how will the U.S. Gross National Product (GNP) be affected if the Cleveland restaurant is owned by a Swiss corporation? How will the U.S. Gros ...

Question the head of the accounting department at a major

Question: The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the assumption that ...

Question the price of licenses for tractors owned by

Question: The price of licenses for tractors owned by farmers who grow X falls. The cost of a license is independent of how many days the tractor is used. Will profits on the typical farm increase by more than, less than ...

Question you are an economist who wants to know how risk of

Question: You are an economist who wants to know how risk of on-the-job injury affects peoples' wages. Studying construction workers (who have a substantial risk exposure), you discover that they earn very little more th ...

Question in august 2018 the us federal deficit topped 780

Question: In August 2018, the U.S. federal deficit topped $780 billion and the national debt grew to more than $21 trillion. (You can find real-time numbers for the deficit, debt, and much more at US Debt Clock.) The Con ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert