Answered: What conditions must non-linear time…

What conditions must non-linear time series models, such as vector autoregressive models, satisfy in order to use impulse response functions

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.2CE: Plot the logarithm of arrivals for each transportation mode against time, all on the same graph....

See similar textbooks

Related questions

Q: The number of bacteria in a culture is increasing according to the law of exponential growth. There…

Q: You own a restaurant near the beach. Business has been growing each year, but obviously spikes…

Q: An independent variable in a model is also called: a. explained variable. b. unexplained variable.…

A: Option (c).

Q: You model the relationship between citizens' consumption and their monthly income. Based on your…

A: Heteroskedasticity is a type of error that can occur in a regression model. This error occurs when…

Q: The table below shows the number, in thousands, of vehicles parked in the central business district…

A: We have given the data of the vehicles parked in the central business district of the city on a…

Q: As the number of relevant independent variables in a regression increases, the R-squared of a…

A: There is a strong relation exists between independent variables and R square

Q: Questions 6 & 7: A model for the Consumer Price Index (CPI) for the period July 2005 (t = 0) to…

A: Answer: (6). To find the inflation rate in November 2005 (t=4) the following formula will be used:…

Q: Exlplain Linear Conditionally Unbiased Estimators and the Gauss–Markov Theorem with its limitations?

A: Ordinary Least Square (OLS) is a method which is used to estimate the value of the regression…

Q: Consider the two-sector macroeconomic model of a fictitious country: dy dt C = 0.5 Y + 540 I = 425…

A: Rate of change of Y w.r.t to t : d(Y)/dt = 0.034 (C + I - 0.6 Y ) C = 0.5Y + 540 I = 425 C…

Q: Suppose you run the following regression: outcome=alpha0 + alpha1*female + alpha2*married + epsilon.…

A: The objective of the question is to calculate the estimated outcome for married females using the…

Q: 1. Solve the difference equations and analyze the time paths Yt+22yt+1 + 2yt = 1, Yo = 3, Y₁ = 4 C

A: The total solution of a difference equation comprises of a particular solution and a complementary…

Q: Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation with…

A: Step 1: For (a) :To find V(t), the quadratic model representing the per capita consumption of fresh…

Q: Which of the following is an assumption on which time series regression is based a. A time series…

A: Time series regression is a statistical technique used to predict future responses based on the…

Q: Expedia wants to use regression analysis to build a model for airfare tickets prices in the states:…

A: Regression model:This model clearly illustrates the relationship between two variables, with one…

Q: rue or False For a linear regression model including only an intercept, the OLS estimator of that…

Q: chern California is given by: P = 13 N0.80 ed on your knowledge of non-line- essions and logarithm…

A: *Answer:

Q: Who Invented Instrumental Variables Regression?

A: The instrumental variables estimator first appeared explicitly in Appendix B of The Tariff on Animal…

Q: 6. The following two regression models are Probit and Logit respectively: P(Y-112)-(B+B₁ × X₁ +₂×…

A: Given function Pr(Y=1|X)=ϕ(β0+β1X1+β2X2)---Probit modelPr(Y=1|X)=F(β0+β1X1+β2X2)---Logit model

Q: Question 2. Which of the following models can be estimated (following a suitable transformation if…

A: Ordinary least square model is used to estimate the value of dependent variable when independent…

Q: In the log-log transformation lecture, we analyzed the price of pet food can. The final model was Ln…

A: We are going to use Single variable optimisation technique and transformation from log to non-linear…

Q: The fox population in a certain region has a continuous growth rate of 9 percent per year. It…

A: Population2000 = 29100 t = 0 i.e. 2000 p(0) = 29100 Growth rate 9%

Q: A. → Use Hessian Matrix to classify the stationary point of the function - π = 50Q₁-20…

A: A scalar field is another name for a square matrix that contains partial derivatives of a…

Q: In a regression problem with 1 output variable and with a total number of 100 possible input…

A: Regression is a statistical technique used in finance, investing, and other fields to assess the…

Q: 1. Suppose that we are interested in measuring the relationship between hourly wage and output…

A: Given The given regression equation: log(hrwaget)=β0+β1logoutphrt+ut .... (1) Here β0 =…

Q: Find a 3 x 3 stochastic matrix A that has exactly one initial state vector that will generate a…

A: The objective of the question is to find an initial state vector that will generate a Markov chain…

Q: The table shows the yield (in bushels per acre) and the total production (in millions of bushels)…

A: Logarithmic regression model: In this model, the explanatory variable is in logarithmic form. Here x…

Q: List four main reasons and explain why empirical research often involves taking natural logarithmic…

A: Times Series analysis:- it is a statistical technique which focuses on an ordered sequence of…

Q: Consider the following estimated regression model relating annual salary to years of education and…

A: The objective of the question is to calculate the estimated annual salary of an employee based on…

Q: Consider the following regression model: wage-Bi+Bamale+Bamalexedu+Bieduru, where wage is the hourly…

A: * SOLUTION :- (8) From the given information the answer is provided as below ,

Q: Project capital, GDP, investment, and depreciation for Years t=0,1,2,...,10 and graph a time plot of…

A: The Solow growth model is a common economic model that proposes that the accumulation of capital,…

Q: Find the degrees of freedom in a regression model that has 40 observations, 6 independent variables…

A: Degree of freedom is the number of values in the final calculation of a statistics that are free to…

Q: Suppose you run the following regression: outcome=alpha0 + alpha1*female + alpha2*married + epsilon.…

A: The objective of the question is to find the estimated outcome for non-married females using the…

Q: A first year student estimated a linear consumption function and found out that Ct = 200 +…

A: Income refers to the source of livelihood which gives the incentive to workers. It means the people…

Q: Suppose following model is given Qa = k (a constant) Qs = -y + SP; Pt+1 = Pt - o(Qst – Qat) where,…

A: Given: Qd = k

Q: Given the following: C(YT) = 200+ 0.75(Y - T) I(r) = 80-20r L(r,Y)=Y-90r G = 200 T = 75 M = 2500 P =…

A: IS curve shows equilibrium in the goods and services market, and LM curve shows equilibrium in the…

Q: Define coefficients of the Linear Regression Model?

A: Regression Analysis: Regression analysis is the tool that shows or analyses the relationship between…

Q: Can we compare the linear-log model and the log-log model? Which of the log regression models best…

A: The log-log model and linear-log model differs only in the functional form of dependent variables.…

Q: Consumption and lags. Consider a closed-economy aggregate expenditure model where the current…

A: Aggregate demand represents the total demand for goods and services in an economy at a given price…

Q: In a regression problem with one output variable and one input variable, we set up two cutpoints z1…

A: Regression is a measurable technique utilized in money, contributing, and different disciplines that…

Question

What conditions must non-linear time series models, such as vector autoregressive models, satisfy in order to use impulse response functions

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Solution

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

state the limitations of using a cubic function with inflection point to model the side of a hill. What assumptions have been made that may affect the reasonableness of your solutions?
Derive the MU function from the following TU function: ?? = 200? − 25?2 + ?3
Which of the following is an assumption on which time series regression is based? a. A time series process follows a model that is nonlinear in parameters. b. In a time series process, no independent variable is a perfect linear combination of the others.
Hello. May I ask how did you get the values? Were those only assumed values? Can you also explain how did you make the normal form thoroughly?
In attempting to formulate a model of the passenger arrival data on cruise ships over time would a nonlinear (perhaps a multiplicative exponential) model be preferable to a linear model of cruise ship arrivals against time? What about in the case of the passenger arrivals by ferry against time?
The equation, d(t) = 350 t + 6560 represents the tuition, d dollars, at a college for the year that is t years since 2013. Find an inverse function for this model. ++350 6560 t-6560 350 t-6560 300 t-350 6560 S (o
X(t) is a wide sense stationary stochastic process with autocorrelation function sin(271000r) R„(T)=10- 271000r The process Y(t) is a version of X(t) delayed by 50 micro seconds. {Y(t) = X(t - t0)} (a) Derive the autocorrelation function of Y (t). (b) Derive the cross-correlation function of X(t) and Y (t). (c) Are X(t) and Y (t) jointly wide sense stationary? IUnloaded File Details
Find a 3 x 3 stochastic matrix A that has exactly one initial state vector that will generate a Markov chain with a steady-state vector. A= 0.4 0.3 0.3 0.2 0.6 0.2 0.1 0.4 0.5
Sediment buildup behind a dam can adversely affect a reservoir's storage capacity. Measurements of a reservoir in 1988 showed it had a capacity of 500,000 acre-feet of water. Measurements in 2018 showed that the reservoir's capacity has been decreasing at a rate of 2,000 acre-feet per year. Find a linear model of the number of acre-feet A of water in the reservoir n years after 1988.
Colton is trying to figure out when two buses traveling at different speeds will pass one another. The buses are traveling in the same direction and begin 3 miles apart. He has defined variable tt as follows: Let tt represent the time in hours. Is this a good variable definition? YES OR NO ? IF NO than explain why?
After the end of an advertising campaign, the sales of a product is given by S=900,000e 0.2t where S is weekly sales in dollars and t is the number of weeks since the end of the campaign. (a) Find the rate of change of S (that is, the rate of sales decay). dS dt = (b) From looking at the function and its derivative, explain how you know sales are decreasing. The given function is an exponential ---Select--- ✓ model. Additionally, the derivative of the given function is always ---Select--- Pollution levels in a lake have been modeled by the equation x = 0.05 +0.18e-0.38t where x is the volume of pollutants (in cubic kilometers) and t is the time (in years). What is the rate of change of x with respect to time? x'(t) = With U.S. Department of Health and Human Services data from 2002 and projected to 2024, the total public expenditures for health care H can be modeled by H = 1,500 0.053t where t is the number of years past 2000 and H is in billions of dollars. If this model is accurate,…
Which of the following statements is true under the Gauss-Markov assumptions? a. Among a certain class of estimators, OLS estimators are best linear unbiased but are asymptotically inefficient. b. Among a certain class of estimators, OLS estimators are biased but asymptotically efficient. c. Among a certain class of estimators, OLS estimators are best linear unbiased and asymptotically efficient. d. The LM test is independent of the Gauss-Markov assumptions. O a. a O b. b О с. с O d. d