- 12.1: Does first differencing reduce autocorrelation? Consider the models...
- 12.2: Derive the disturbance covariance matrix for the model yt = xt + t,...
- 12.3: The following regression is obtained by ordinary least squares, usi...
- 12.4: It is commonly asserted that the DurbinWatson statistic is only app...
- 12.5: The data used to fit the expectations augmented Phillips curve in E...
- 12.6: Data for fitting an improved Phillips curve model can be obtained f...
Solutions for Chapter 12: SERIAL CORRELATION
Full solutions for Econometric Analysis | 5th Edition
the idea that people should pay taxes based on the benefits they receive from government services
the theoretical separation of nominal and real variables
goods that are excludable but not rival in consumption
goods that are rival in consumption but not excludable
constant returns to scale
The property whereby long-run average total cost stays the same as the quantity of output changes
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
the price that balances quantity supplied and quantity demanded
the field that studies how people make decisions regarding the allocation of resources over time and the handling of risk
the setting of the level of government spending and taxation by government policymakers
a situation in which a market left on its own fails to allocate resources efficiently
the setting of the money supply by policymakers in the central bank
natural rate of unemployment
the normal rate of unemployment around which the unemployment rate fluctuates
a person’s normal income
a particular “game” between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial
goods that are neither excludable nor rival in consumption
people who systematically and purposefully do the best they can to achieve their objectives
the organized withdrawal of labor from a firm by a union
tax on goods produced abroad and sold domestically
society’s understanding of the best ways to produce goods and services
the value of a nation’s exports minus the value of its imports; also called net exports