Answer Exercise 4 with the Australian wine data discussed in Section 9.5. Assume that the supply depends on expected price. Exercise 4 In the demand and supply model for pork discussed in Section 9.3 (data are in Table 9.1), assume that supply depends on expected price, P*t. Estimate the model assuming the following. (a) Naive expectations P*t = Pt-1 This is the Cobweb model. (b) Adaptive expectations. (c) Rational expectations
Answer Exercise 4 with the Australian wine data discussed in Section 9.5. Assume that the supply depends on expected price. Exercise 4 In the demand and supply model for pork discussed in Section 9.3 (data are in Table 9.1), assume that supply depends on expected price, P*t. Estimate the model assuming the following. (a) Naive expectations P*t = Pt-1 This is the Cobweb model. (b) Adaptive expectations. (c) Rational expectations
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Answer Exercise 4 with the Australian wine data discussed in Section 9.5. Assume that the supply depends on expected price.
Exercise 4
In the demand and supply model for pork discussed in Section 9.3 (data are in Table 9.1), assume that supply depends on expected price, P*t. Estimate the model assuming the following.
(a) Naive expectations P*t = Pt-1 This is the Cobweb model.
(b) Adaptive expectations.
(c) Rational expectations
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