Suppose yao + a₁yt-1 + ut, and u₁ = put-1 + et and et is serially uncorrelated with eswhere st.(a)Show that thecontemporaneousexogeneity assumption does not hold(b)Show that theproblem in (a) is solved when yt-2 is included in the model

The objective of the question is to demonstrate that the contemporaneous exogeneity assumption does…

Answered: Suppose yao + a₁yt-1 + ut, and u₁ =…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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a b and c please
The problems with e.g."Acid rain" created by emissions of sulfur dioxide has been onemajor problem in Sweden, not least because emissions have occurred in other countries (eg England and Denmark) andthen transported here. Now assume that if one tonne of sulfur is emitted in England, it results in one (1) gram of sulfur deposition in Sweden. The corresponding deposit of one tonne of sulfur emissions in Denmark is assumed to be 3 grams. Suppose further that The socio-economic damage of one gram of sulfur deposit can be estimated at SEK 0.10.The marginal cost of reduce sulfur emissions in England is estimated at Z SEK per tonne, and in Denmark the equivalent is estimatedcost to 2Z SEK per tonne. Z indicates here the emission reduction in tonnes (eg in Denmark it would cost SEK 4 toreduce emissions by two tonnes). In other words, Z = 0 corresponds to the emission level where there is no reductionemissions occur. a) Suppose now that the European Union decides that Denmark and England…
Give me correct answer with calculation and full explanation otherwise i give downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
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The multinomial logit choice model determines the mode split. The following utilitymodel was developed to predict the H-year mode split between two TAZs 1 and 2:Um: Ui = Bi - 0.05TTi - 0.25COSTiwhereUi = Utility value for mode iBi = Mode specific constant for mode iTTi = Travel time per trip for mode i, in minuteCOSTi = Travel cost per trip per person for mode i, in dollar.The modal attributes areMode Bi TTi COSTiAutoCarpoolTransit2.11.20.01621302.500.800.75Assuming that the total attractions over the entire morning commuting period from TAZ 2 to TAZ 1are 7,000 person trips and each vehicle on average consumes 400 ft2 land in the parking lot (Note:transit is run by an outside transit company, which does not use the parking lots).a) What is the mode share for auto, carpool, and transit between TAZs 1 and 2?b) Assuming that the average auto and carpool occupancies are 1.0 and 3.2, respectively, how manyautos and carpools will use the parking lots?c) The industrial companies that attract…
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Hhe paypil prbeluces. Drive the first orler Condition of Maximization for lutemediate gad with respect to Pel) Peti -MCtti
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Suppose yao + a₁yt-1 + ut, and u₁ = put-1 + et and et is serially uncorrelated with es where st. (a) Show that the contemporaneous exogeneity assumption does not hold (b) Show that the problem in (a) is solved when yt-2 is included in the model