100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Solutions Manual for Essentials of Econometrics, 5th Edition by Damodar Gujarati, Dawn Porter (All Chapters) A+ CA$19.17
Add to cart
Quickly navigate to
Preview
  2.  
  3. Essentials Of Econometrics, 5th Edition By Damodar
  4.  
  5. Essentials of Econometrics, 5th Edition by Damodar

Exam (elaborations)

Solutions Manual for Essentials of Econometrics, 5th Edition by Damodar Gujarati, Dawn Porter (All Chapters) A+
 27 views  1 purchase
  • Course
  • Essentials of Econometrics, 5th Edition by Damodar
  • Institution
  • Essentials Of Econometrics, 5th Edition By Damodar
  • Book
  • Essentials of Econometrics

Solutions Manual for Essentials of Econometrics, 5th Edition by Damodar Gujarati, Dawn Porter (All Chapters) A+,,

Preview 4 out of 236  pages

Document information

  • October 11, 2024
  • 236
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • solutions
  • manual for
  • essentials of
  • econometrics
  • 5th
  • edition
  • damodar gujarati
  • 2024
  • by
  • essentials of econometrics
  • 5th edition by damodar gujarati dawn porter

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • Solutions Manual for Essentials of Econometrics 5th Edition by Damodar N. Gujarati , ISBN: 9781071850398 |All Chapters Covered| Guide A+
  • Solution Manual For Essentials of Econometrics, 5th Edition by Gujarati, All Chapters 1 to 22 complete Verified editon ISBN: 9781071850398
  • Solution Manual For Essentials of Econometrics, 5th Edition by Gujarati, All 1-22 Chapters Covered ,Latest Edition, ISBN:9781071850398
All for this textbook (6)

Written for

  • Essentials of Econometrics, 5th Edition by Damodar
All documents for this subject (1)

Seller

avatar-seller
ASolution

Reviews received

Content preview

Created By: A Solution


Solutions Manual for Essentials of Econometrics, 5th Edition by

Damodar Gujarati, Dawn Porter (All Chapters) A+

CHAPTER 1

THE NATURE AND SCOPE OF ECONOMETRICS

QUESTIONS

1.1. (a) Other things remaining the same, the higher the tax rate is, the lower the price of a

house will be.

(b) Assume that the data are cross-sectional, involving several residential communities with

differing tax rates.

(c)

where Y = price of the house and X = tax rate

(d)

(e) Given the sample, one can use OLS to estimate the parameters of the model.

(f) Aside from the tax rate, other factors that affect house prices are mortgage interest rates,

house size, buyers’ family income, the state of the economy, the local crime rate, etc. Such

variables may be included in a more detailed multiple regression model.

(g)



(h) The estimated regression can be used to predict the average price of a house in a

community, given the tax rate in that community. Of course, it is assumed that all other factors

stay the same.




1

,Created By: A Solution


1.2. Econometricians are now routinely employed in government and business to estimate and

/ or forecast (1) price and cost elasticities, (2) production and cost functions, and (3) demand

functions for goods and services, etc. Econometric forecasting is a growth industry.

1.3. The economy will be bolstered if the increase in the money supply leads to a reduction in

the interest rate which will lead to more investment activity and, therefore, to more output and

more employment. If the increase in the money supply, however, leads to inflation, the preceding

result may



not occur. The job of the econometrician will be to develop a model to predict the effect of the

increase in the money supply on inflation, interest rate, employment, etc.

1.4. As a matter of fact, on October 1, 1993 the Federal Government did increase the gasoline

tax by 4 cents. Since gasoline and cars are complementary products, economic theory suggests

that an increase in the price of gasoline will not only lead to a decline in the demand for gasoline

but also in the demand for cars, ceteris paribus. The Ford Motor Companymay be advised to

produce more fuel-efficient cars to stave off a serious decline in the demand for its cars. An

automobile demand function will provide numerical estimates of the effect of gasoline tax on the

demandfor automobiles.

1.5.

There are many alternative designs possible. However, to keep things simple, and discuss just a

basic idea of the design, we could think of using an econometric model known as Autoregressive

Distributed Lag (ARDL) of the form:




2

,Created By: A Solution




3

, Created By: A Solution




4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ASolution. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$19.17. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

56326 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$19.17  1x  sold
  • (0)
Add to cart
Added