An economist wants to quantify the offect of olectricity prices on the real economy. By using quarterly data, he estimated an FDL model over 1950:01 - 200304 and obtained the following result Y= 1.2-0.007E,- 0.014E, -0.019E, -0.024E, -0.038E, -0.013E, 0.006E, -0.009E, +0.000E, where Y, is the quarterly percentage change in GDP (L.o, = 100ln(GDP/GDP,) and GDP, denotes the value of quarterly gross domestic product in an economy.). E, is the percentage point difference between electricity prices at date t and their maximum value during the past 5 years. Suppose that eloctricity prices jump 27% above their previous peak value and stay at this new higher lovel (so that E, 27 and E Ea 0). Calculate the predicted (percentage point) effect on output growth for each quarter over the next 2 years. Round your responses to two decimal places.) The immediate effect on output in the current period is percent fter 1 quarter Jpercent after 2 quarter percent fter 3 quarter percent

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An economist wants to quantify the offect of olectricity prices on the real economy. By using quarterly data, ho estimated an FDL model over
1950:01 - 200304 and obtained the following result:
Ý = 1.2-0.007E, -0.014E,-0.019E, 2-0.024E, 3-0.038E, -0.013E, 0.006E,-0.009E, +0.006E,
where
Y, is the quartorly percontage change in GDP (i.e. = 100ln(GDP/GDP.) and GDP, denotes the value of quartorly gross domestic product in an
economy.). E, is the percentage point difference between electricity prices at date t and thoir maximum value during the past 5 years
Suppose that eloctricity prices jump 27% above their previous peak value and stay at this new higher lovel (so that E, 27 and
E En2 - 0). Calculate the prodicted (percentage point) offect on output growth for each quartor over the noxt 2 yoars.
(Round your responses to two decimal places.)
The immediate effect on output in the current period is
percent.
percent
percent
percent
After 1 quarter -
After 2 quarter
After 3 quarter
Transcribed Image Text:An economist wants to quantify the offect of olectricity prices on the real economy. By using quarterly data, ho estimated an FDL model over 1950:01 - 200304 and obtained the following result: Ý = 1.2-0.007E, -0.014E,-0.019E, 2-0.024E, 3-0.038E, -0.013E, 0.006E,-0.009E, +0.006E, where Y, is the quartorly percontage change in GDP (i.e. = 100ln(GDP/GDP.) and GDP, denotes the value of quartorly gross domestic product in an economy.). E, is the percentage point difference between electricity prices at date t and thoir maximum value during the past 5 years Suppose that eloctricity prices jump 27% above their previous peak value and stay at this new higher lovel (so that E, 27 and E En2 - 0). Calculate the prodicted (percentage point) offect on output growth for each quartor over the noxt 2 yoars. (Round your responses to two decimal places.) The immediate effect on output in the current period is percent. percent percent percent After 1 quarter - After 2 quarter After 3 quarter
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