Consider the following simple relationship between aggregate savings St and aggregate income Yt: St= a + BYt + εt, t = 1, ..., T. For some country this relationship is estimated by OLS over the years 1956-2005 (T = 50). The results are given below: = Variable Coefficients Constant 38.90 Y 0.098 22.57, R² = 0.93, DW = 0.70 Standard error 4.57 0.009 where ô is the standard error of regression, R² is the multiple correla- tion coefficient, and DW is the Durbin-Watson statistic. (a) Explain why the result indicate that there may be a problem of positive autocorrelation. Can you give arguments why in eco- nomic models positive autocorrelation is more likely than nega- tive one?
Consider the following simple relationship between aggregate savings St and aggregate income Yt: St= a + BYt + εt, t = 1, ..., T. For some country this relationship is estimated by OLS over the years 1956-2005 (T = 50). The results are given below: = Variable Coefficients Constant 38.90 Y 0.098 22.57, R² = 0.93, DW = 0.70 Standard error 4.57 0.009 where ô is the standard error of regression, R² is the multiple correla- tion coefficient, and DW is the Durbin-Watson statistic. (a) Explain why the result indicate that there may be a problem of positive autocorrelation. Can you give arguments why in eco- nomic models positive autocorrelation is more likely than nega- tive one?
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
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