× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Biology-Related Homework Help Medicine Medical Administration
New Topic  
tjjt tjjt
wrote...
Go to Answer
Posts: 658
Rep: 0 0
6 years ago
You have re-estimated the two variable VAR model of the change in the inflation rate and the unemployment rate presented in your textbook using the sample period 1982:I (first quarter) to 2009:IV.
 
  To see if the conclusions regarding Granger causality of changed, you conduct an F-test for this new sample period. The results are as follows: The F-statistic testing the null hypothesis that the coefficients on Unempt-1, Unempt-2, Unempt-3, and Unemplt-4 are zero in the inflation equation (Equation 16.5 in your textbook) is 6.04. The F-statistic testing the hypothesis that the coefficients on the four lags of Inft are zero in the unemployment equation (Equation 16.6 in your textbook) is 0.80.
 
  a. What is the critical value of the F-statistic in both cases?
 
  b. Do you think that the unemployment rate Granger-causes changes in the inflation rate?
 
  c. Do you think that the change in the inflation rate Granger-causes the unemployment rate?
  What will be an ideal response?
Read 103 times
1 Reply
Replies
Answer verified by a subject expert
bolbolbolbol
wrote...
#1
Staff Member
Top Poster
Posts: 3162
Rep: 261 2
2 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics

tjjt Author
wrote...

6 years ago
Thanks
kamikazekota
wrote...

Yesterday
Correct Slight Smile TY
linlinlin
wrote...

2 hours ago
Smart ... Thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1367 People Browsing
 127 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 30
  
 333
  
 308
Your Opinion
What's your favorite math subject?
Votes: 293
Previous poll results: Who will win the 2024 president election?