25 - Chapter 2, Exercise Solutions, Principles of...

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Chapter 2, Exercise Solutions, Principles of Econometrics, 3e 25 Exercise 2.13(a) (continued) (a) 400 800 1200 1600 2000 2400 90 92 94 96 98 00 02 04 STARTS Figure xr2.13(c) New privately owned houses started against time (b) Refer to Figure xr2.13(d). (c) The estimated model is n 2992.739 194.233 STARTS FIXED_RATE =− The coefficient 194.233 suggests that the number of new privately owned housing starts decreases by 194,233 for a 1% increase in the 30 year fixed interest rate for home loans. The intercept suggests that when the 30 year fixed interest rate is 0%, 2,992,739 will be
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This note was uploaded on 11/23/2011 for the course ECON MPBE taught by Professor Jansveceny during the Spring '11 term at Metropolitní Univerzita Praha.

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