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Functional Form and Dynamic Models

Functional Form and Dynamic Models. Introduction. Discuss the importance of functional form Examine the Ramsey Reset Test for Functional Form Describe the use of lags in econometric models Evaluate the Koyk transformation as a means of overcoming some of the problems of lagged variables.

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1.29k views • 27 slides

Economics 310

Economics 310. Lecture 7 Testing Linear Restrictions. Single Linear Restriction. Cigarette Demand Example. VARIABLE ESTIMATED STANDARD T-RATIO PARTIAL STANDARDIZED ELASTICITY NAME COEFFICIENT ERROR 24 DF P-VALUE CORR. COEFFICIENT AT MEANS

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162 views • 10 slides

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Ramsey reset test - PowerPoint PPT Presentation

Functional Form and Dynamic Models

Economics 310