Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Econometrics Expert

problem 1: What do you mean by the term competitive market? In brief describe the types of markets other than perfectly competitive markets.

problem 2: What do you mean by the term demand curve? Why does it slope downward?

problem 3: Define the term equilibrium of a market. describe the forces that move a market toward its equilibrium.

problem 4: describe the role of prices in the market economies.

problem 5: Throughout the 1990s, technological advance decreased the cost of computer chips. How do you think this influenced the market for computers? For computer software? For typepreparers?

problem 6:  To do this exercise you must have read the paper by Romer and Romer published in the AER.

A) Download the data file, inflation.xls or inflation.dta.

B) Plot both series against time, that is, do two plots: in the first one, graph expected inflation against time and, in the second one, plot actual inflation against time.

C) Test the hypothesis which the survey data for inflation expectations is rational. In order to do this, follow the steps below:

  • Run the given regression using simple OLS: πt = α + βπet + εt where πt stands for actual inflation and πet stands for the survey expected inflation.
  • Test the hypothesis that a = 0 (where a is the estimate for the intercept).
  • Test the hypothesis that b = 1, where b is the estimate for β.
  • Notice that if you refuse the hypothesis above, you can conclude (in a rough sense) that the survey is not rational. What do you conclude from your tests illustrated above?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M92742
  • Price:- $70

Priced at Now at $70, Verified Solution

Have any Question? 


Related Questions in Econometrics

The following two contaminants are present in a gasoline

The following two contaminants are present in a gasoline mixture: hexane and octane. If a gasoline spill has occurred in the subsurface due to an underground storage tank rupture and contaminated the groundwater, how qui ...

Ajax cleaning products is a medium-sized firm operating in

Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm-Tile King. Ajax produces a multiheaded tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decide ...

Cost analysis the leisure products lp company manufactures

COST ANALYSIS The Leisure Products (LP) Company manufactures lawn and patio furniture. Most of its output is sold to do-it-yourself warehouse stores (e.g., Lowe's Home Improvement) and to retail hardware and department s ...

1 draw a monopoly graph and indicate the level of a price

1. Draw a monopoly graph and indicate the level of a price ceiling that would decrease the quantity of output to a level below the monopoly level of output 2. If you had $10,000 to invest in an alternative fuel, which on ...

The following two observations have the same explanation

The following two observations have the same explanation. River water is often muddy, whereas seawater is not. At the confluence of a river with the sea, a large silt deposit is always observed. Based on the principles o ...

Consider the market for pop rocks depicted in the diagram

Consider the market for Pop Rocks depicted in the diagram below: a. If the Pop Rock industry were competitive, what would the competitive price and quantity be? b. If the Pop Rock industry were competitive, what would be ...

1 the sheet resistance of a typical aluminium metallization

1. The sheet resistance of a typical aluminium metallization is 0.03 ohm/sq. What is aluminium thickness? 2. Resistance of 200µm long copper lines was measured to be 40 ohm. From copper deposition process we know that th ...

Assume that two companies a and b are duopolists who

Assume that two companies (A and B) are duopolists who produce identical products. Demand for the products is given by the following linear demand function: p = 200 - QA - QB where QA and QB are the quantities sold by th ...

In the 1960s yale university began offering students an

In the 1960s Yale University began offering students an alternative to taking out student loans. Instead, students could attend Yale in exchange for a specified percentage of their earnings over a significant length of t ...

1describe what occurs to american imports and exports when

1.Describe what occurs to American imports and exports when the U.S. dollar is strong. Describe what occurs to American imports and exports when the U.S. dollar is weak. 2.What precautions can the Federal Reserve take to ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen