17.22. Consider the following model:
Y* = a + ft0 Xt + ut where Y* = desired, or long-run, business expenditure for new plant and equipment, Xt = sales, and t = time. Using the stock adjustment model, estimate the parameters of the long- and short-run demand function for expenditure on new plant and equipment given in Table 17.8. How would you find out if there is serial correlation in the data?
See his article, "The Demand for Capital Goods by Manufacturers: A Study of Quarterly Time Series," Econometrica, vol. 30, no. 3, July 1962, pp. 407-423.
Gujarati: Basic I III. Topics in Econometrics I 17. Dynamic Econometric I I © The McGraw-Hill
Econometrics, Fourth Models: Autoregressive Companies, 2004 Edition and Distributed-Lag
710 PART THREE: TOPICS IN ECONOMETRICS
Was this article helpful?
Learning About The Rules Of The Rich And Wealthy Can Have Amazing Benefits For Your Life And Success. Discover the hidden rules and beat the rich at their own game. The general population has a love / hate kinship with riches. They resent those who have it, but spend their total lives attempting to get it for themselves. The reason an immense majority of individuals never accumulate a substantial savings is because they don't comprehend the nature of money or how it works.