Essay About Changex2Adult Male Unemployment Rate And Long Term Rate Elasticity

Econometrics
6.14[pic 1]Model: [pic 2] Define: [pic 3]Stata: reg logvl logw[pic 4]The estimated elasticity is 1.333785＝1.3338.[pic 5] So the elasticity is not statistically significantly different from 1.7.20a.  1% + in XY (Quit Rate) ChangeX2Adult Male Unemployment Rate- 0.34%X3Percentage of Employees Younger than 25+ 1.22%X4Manufacturing Employment in Quarter t-1 to Quarter t-4+ 1.22%X5Percentage of Women Employees+ 0.80%X6Time Trend- 0.0055%b. Yes, if it is easier for adult males to lose jobs, the quit rate will -.c. Young workers are more likely to change their jobs, to pursue greater utilities.d. The wage probably +d by time, the higher the wage, the lower the quit rate. e. No, because adjusted goodness of fit is a relative indicator.f. Yes. Because we know the Betas and ts. Deduce the standard errors by [pic 6]7.21a. Model: [pic 7] Define: [pic 8] Stata:gen lnm=log(m2/cpi)gen lny=log(gdp/cpi)gen lnl=log(ltrate)gen lns=log(tbrate)reg lnm lny lnlreg lnm lny lns[pic 9]The long term rate elasticity is -0.0516, GDP elasticity is 0.4946.The short term rate elasticity is -0.0255, GDP elasticity is 0.5243.b.Model: [pic 10] Define: [pic 11] Stata:gen lnmy=log(m2/gdp)reg lnmy lnlreg lnmy lns[pic 12] 1% + in XM/Y ChangelLong Term Interest Rate+ 0.2149%sShort Term Interest Rate+ 0.1073%According to R2 the long term rate has a higher one, so it fits better.7.22a. Model: [pic 13]Stata:gen lny=log(output)gen lnk=log(capital)gen lnl=log(labor)[pic 14] 1% + in XY (Output) ChangeKCapital+ 0.1398%LLabor+ 2.3284%The capital parameter is not significant, the labor parameter is significant but this is not real. Because the parameters in Cobb-Douglas Function could not be larger than 1. But in this model the R2 and F are very high, there might be multicollinearity.