Logit Model and probit model.
Multicollinearity
Statistical function.
Consider the following Keynesian model of income determination
Where,
C= Consumption expenditure
I=Investment expenditure
Y=Income
G=Government expenditure
G₁ and Yt-1 are assumed predetermined
(a) State the reduced form equations and determine which of the preceding equations are identified.
(b) Which method will you use to estimate the parameters of the over identified equation and of the exactly identified equation? Justify your answer.
Given the following model:
Where D₁=0 for the first 20 observations and D₁=1 for the remaining 30 observations. You are also told that var (u2i)=300.
(a) How would you interpret ẞ₁ and ẞ2?
(b) What are the mean values of the two groups?
Autocorrelation
A research study intends to examine the impact of self-employment scheme for rehabilitation of manual scavengers. Suggest an appropriate research design to undertake such a study giving reasons the kind of research design you have suggested.