econ 326_assignemnt 3 - Part 1 a) We can calculate the...

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Part 1 a) We can calculate the characteristic of Korean inflation rate from 1961 to 1977 using the GNP deflator. From the SHAZAM output, the estimated of Korean inflation model is: ln(P* t ) = 0.0946 + 0.0070 ln(W* t )+0.3065 ln(R* t ) + 0.1972 ln(N* t )+ 0.1403 ln(Y* t ) The P-values of the coefficients estimates of wage index price of capital index, index of the price materials and real GNP are 0.972, 0.184, 0.125, and 0.632, respectively. All of the coefficients have a P-value greater than the 5% significance level; therefore, we conclude that there is no reason no reason to reject that null hypothesis that any of the coefficients do not have affected the dependent variable. We can test the joint significant of the coefficient of all variables by comparing the F-test statistic and p-value. From the SHAMZAM output, the F-stat is 2.247 and the p-value is 0.130, and this p- value is greater than the 5% significance level. We concluded that there is no reason to reject the null hypothesis that all of the beta coefficients are equal to zero. b) We can calculate the characteristic of the Korean inflation rate from 1961 to 1977 using another alternative, the whole price index. From the SHAZAM output, the estimated of Korean inflation models is: ln(P* t ) = -0.0402 + 0.0044 ln(W* t )+ 0.5504 ln(R* t )+0.5244 (N* t )+0.5625 ln(Y* t )
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This note was uploaded on 11/29/2010 for the course ECONOMICS 300-400 taught by Professor Varies during the Spring '10 term at Cornell University (Engineering School).

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econ 326_assignemnt 3 - Part 1 a) We can calculate the...

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