A VAR with k time series variables consists of
A) k equations, one for each of the variables, where the regressors in all equations are lagged values of all the variables
B) a single equation, where the regressors are lagged values of all the variables
C) k equations, one for each of the variables, where the regressors in all equations are never more than one lag of all the variables
D) k equations, one for each of the variables, where the regressors in all equations are current values of all the variables
Answer: A
You might also like to view...
Railway engines create sparks, which sometimes set fire to crops planted near the tracks. A large number of farmers are affected, and transactions costs prevent the farmers and the railroad from negotiating bribes or side payments. The price of railway service is $250 per train, and each train causes $50 of crop damage. The accompanying diagram shows the relevant market for railway service.
(i) Suppose a Pigovian tax of $50 per train is imposed on the railroad. By how much will social gain increase?
(ii) Suppose that the farmers can move their crops away from the tracks at a cost of $2,400 per month. If the goal is to achieve economic efficiency, who should be made liable for the crop damage? What will be the resulting social gain?
(iii) Suppose that farmers still have the option of moving their crops as described in part ii. Also suppose that the railroad can install safety equipment that will prevent the engine sparks at a cost of $25 per train. If the goal is to achieve economic efficiency, who should be made liable for the crop damage? What will be the resulting social gain?
Refer to Figure 18-1. Currency speculators believe that the value of the euro will decrease relative to the dollar. Assuming all else remains constant, how would this be represented?
A) Supply would increase, demand would decrease and the economy moves from C to B to A. B) Supply would decrease, demand would decrease and the economy moves from B to C to D. C) Supply would increase, demand would increase and the economy moves from D to A to B. D) Supply would decrease, demand would increase and the economy moves from A to D to C.
Katie had a before-tax income of $40,000 and paid taxes of $6,000 . Rinji had a before-tax income of $35,000 and paid taxes of $5,250 . Based on this information, the tax system is
a. There is insufficient information to answer the question. b. progressive c. based on the benefits received d. regressive e. proportional
The European Common Market was renamed the ______________________.
Fill in the blank(s) with the appropriate word(s).