Q5. In a panel data modelling scenario, what are fixed effects?
(2 marks) Discuss (show in...
Q5. In a panel data modelling scenario, what are fixed effects?
Discuss (show in equation form) three ways that you could
use to estimate a Fixed effects
QUESTION 2 [10 MARKS] 2.1 Discuss critically the challenges for
a small business of calculating fixed asset depreciation. (5) 2.2
What is residual value, and how does it differ from the estimated
useful life of an asset? (5)
Q5)
i) What would a central bank need to do to reverse the effects of a
favorable supply shock on inflation? What would its reaction do to
the unemployment rate in the short run?
ii) 5. Suppose speculators lost confidence in foreign
economies and bought more U.S. bonds. How would this affect net
exports in the U.S., and which way would this cause the aggregate
demand curve to shift?
Q6) Describe the proc
ITIS1P97 Data Analysis and Business Modelling. Excel
Questions
PROBLEM 1: RANIS Enterprise Solutions is the provider
of hosted customer relationship management (CRM) solutions for
Small to Medium Enterprises (SMEs). The headquarters are in
Toronto, ON, and they have clients across the globe. Currently,
they are charging a $500 monthly fee for their CRM services that
they offer to 300 of their clients. They have recently been
contacted by their software vendor and been told that with a
$180,000 upgrade on...
(a) Discuss the differences between panel data, time series data
and cross sectional data.
(b) Argue with the aid of examples the advantages of panel data
over cross sectional data.
(c) the Hausman specification test is used to choose between two
different panel data models. Identify the two types of the models
explaining their differences.
2. In a model of dynamic increasing returns,
illustrate an alternate scenario to what we discussed in class and
briefly explain using words. In this scenario, France protects its
cotton industry with a temporary blockade, but after the blockade
ends the protection is not enough for France to retain an advantage
in cotton production, and once UK cotton is no longer blockaded,
that the UK will recover its initial advantage. Be sure to draw and
label any necessary learning curves...
How would you control for these person-specific and
time-specific effects in a panel data regression? d) Can the
regression be used to estimate the effect of gender on an
individual’s earnings? Explain. e) Can the regression be used to
estimate the effect of the national unemployment rate on an
individual’s earnings? Explain. f) In the context of the regression
you suggested for part (c), explain why the regression error for a
given individual might be serially correlated. g) In the...
Discuss panel data and the use of pooled cross-sectional
analysis and give an example of a research question. Then discuss
and predict the outcomes with the use of panel data and the use of
pooled cross-sectional analysis for that same research.
1. What are the effects of fiscal policy under
both fixed and floating exchange rates?
2. What are the effects of monetary
policy under both fixed and
flexible exchange rates?
3. What are the strength/weaknesses of fiscal vs. monetary
policy under fixed and floating exchange rates?