Exercise 4 In this regression we presented the results of the consumption fitted to the income in the period 1980-2005. We divide the data in two periods as 1980-1992 and 1993-2005. Decide there is a structural change in the consumption-income regression in the two periods. The results for all data are as follows cons = 179+ 0.85 Income RSSpull = 265277 The results for 1980-1992(1) and 1993-2005 (2) are as follows 143 - 0.85 Income RSSfull = 13310 (1) cons = cons = 110 + 0.18 Income RSSfuli = 163505 (2)

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Exercise 4
In this regression we presented the results of the consumption fitted to the income in the
period 1980-2005. We divide the data in two periods as 1980-1992 and 1993-2005. Decide if
there is a structural change in the consumption-income regression in the two periods.
The results for all data are as follows
cons = 179 + 0.85 Income RSSfull
= 265277
The results for 1980-1992(1) and 1993-2005 (2) are as follows
143 - 0.85 Income RSSfull
= 13310 (1)
cons =
cons = 110 + 0.18 Income RSSfui
= 163505 (2)
fll
Transcribed Image Text:Exercise 4 In this regression we presented the results of the consumption fitted to the income in the period 1980-2005. We divide the data in two periods as 1980-1992 and 1993-2005. Decide if there is a structural change in the consumption-income regression in the two periods. The results for all data are as follows cons = 179 + 0.85 Income RSSfull = 265277 The results for 1980-1992(1) and 1993-2005 (2) are as follows 143 - 0.85 Income RSSfull = 13310 (1) cons = cons = 110 + 0.18 Income RSSfui = 163505 (2) fll
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