76 258
Assignments Done
Successfully Done
In May 2019

Answer to Question #47155 in Macroeconomics for Nara

Question #47155
Suppose that an endogenous variable yt is related to two exogenous shocks:

where alpha and beta are positive parameters and ε_t~iidN(μ_ε,σ^2_ε)/ η_t~iidN(μ_η,σ^2_η)
cov(ε_t, η_t)=0. eqsilon and eta are unobservable.

(1) are all the parameters(alpha, beta, mus, sigmas) identified?
(2) suppose that alpha=beta=1 and that we can observe another variable x_t=η_t.
can we identify the remaining parameters?
(3) suppose that y is not observed. with the information in (2), what is E(y|x)?
Expert's answer

Not answered

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions