Q2: (a) A researcher fits following regression using data from 2006Q3 to 2017Q4 GDP = -35.39 +0.0113 IF +0.8GDP(-1) i. Let above model assumes Koyck transformation, find the impact of 1st and 2nd lag of Islamic Finance (IF) on GDP. ii. Compute the short run and long run impact of IF on GDP

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Q2 

Solve 2 parts

(a) A researcher fits following regression using data from 2006Q3 to 2017Q4
GIP= -35.39 +0.0113 IF +0.8GDP(-1)
Q2:
i. Let above model assumes Koyck transformation, find the impact of 1 and 2nd lag of
Islamic Finance (IF) on GDP.
ii. Compute the short run and long run impact of IF on GDP|
Transcribed Image Text:(a) A researcher fits following regression using data from 2006Q3 to 2017Q4 GIP= -35.39 +0.0113 IF +0.8GDP(-1) Q2: i. Let above model assumes Koyck transformation, find the impact of 1 and 2nd lag of Islamic Finance (IF) on GDP. ii. Compute the short run and long run impact of IF on GDP|
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