7. We ran a Vector-autoregresive model with two variables: with dtrade (change in trade balance), doilpr (change in oilpr) with one-lag and the result is as follows: dtrade 1st Lag of Trade Balance 1st Lag of Oil Price doilpr 1st Lag of Trade Balance 1st Lag of Oil Price Coef 0.48 275 0.04 1291 0.02 2939 0.35 7591 Std. Err 0.04 2789 0.02 1304 0.09 2198 0.04 5904 Z- statistic 11. 28 1.9 4 0.2 5 7.7 9 P>| zl 0 0.0 53 0.8 04 0 a) What can you infer from the result? b) Can you say anything about the long-run equilibrium value for change in trade- balance given the result?
7. We ran a Vector-autoregresive model with two variables: with dtrade (change in trade balance), doilpr (change in oilpr) with one-lag and the result is as follows: dtrade 1st Lag of Trade Balance 1st Lag of Oil Price doilpr 1st Lag of Trade Balance 1st Lag of Oil Price Coef 0.48 275 0.04 1291 0.02 2939 0.35 7591 Std. Err 0.04 2789 0.02 1304 0.09 2198 0.04 5904 Z- statistic 11. 28 1.9 4 0.2 5 7.7 9 P>| zl 0 0.0 53 0.8 04 0 a) What can you infer from the result? b) Can you say anything about the long-run equilibrium value for change in trade- balance given the result?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![7. We ran a Vector-autoregresive model with two variables: with dtrade (change in trade
balance), doilpr (change in oilpr) with one-lag and the result is as follows:
dtrade
1st Lag of Trade
Balance
1st Lag of Oil Price
doilpr
1st Lag of Trade
Balance
1st Lag of Oil Price
Coef
0.48
275
0.04
1291
0.02
2939
0.35
7591
Std.
Err
0.04
2789
0.02
1304
0.09
2198
0.04
5904
Z-
statistic
11.
28
1.9
4
0.2
5
7.7
9
P>|
zl
0
0.0
53
0.8
04
0
a) What can you infer from the result?
b) Can you say anything about the long-run equilibrium value for change in trade-
balance given the result?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd221770e-bf15-4028-bd6b-18893797f624%2F7970f784-f229-489e-aba7-4a6d261783c1%2Fa2xw75f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. We ran a Vector-autoregresive model with two variables: with dtrade (change in trade
balance), doilpr (change in oilpr) with one-lag and the result is as follows:
dtrade
1st Lag of Trade
Balance
1st Lag of Oil Price
doilpr
1st Lag of Trade
Balance
1st Lag of Oil Price
Coef
0.48
275
0.04
1291
0.02
2939
0.35
7591
Std.
Err
0.04
2789
0.02
1304
0.09
2198
0.04
5904
Z-
statistic
11.
28
1.9
4
0.2
5
7.7
9
P>|
zl
0
0.0
53
0.8
04
0
a) What can you infer from the result?
b) Can you say anything about the long-run equilibrium value for change in trade-
balance given the result?
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