Business, 26.11.2019 02:31 csterner101

Macro economists are interested in why countries have different gross domestic products (gdp). the following regression for 108 countries relates the natural log of gdp to the natural log of the country's population, whether or not the country is landlocked (i. e. no access to oceans), whether the country is a democracy, and the interaction of landlocked and democracy. ingdp; = 26.65+0.73lnpopi-0.19landlocki +0.25demi +0.08landlock *dem (4.97) (0.12) (0.12) (0.15) (0.05)
a) what is the effect of being landlocked on gdp for a non-democracy? for a democracy?
b) test the hypothesis that being a landlocked country has no effect on gdp against the alternative that it does at the 95% confidence level (for a country that is not a democracy).
c) test the hypothesis that being a landlocked country has no effect on gdp against the alternative that it has a negative effect at the 90% confidence level (for a country that is not a democracy).
d) you suspect that the elasticity of gdp with respect to population is 1 (a 1% difference in population is associated with a 1% difference in gdp). do you reject this hypothesis at the 95% level?
e) interpret the coefficient on the interaction between "landlock" and "dem" in a sentence.
f) what is the p-value of the coefficient on the interaction term? interpret the p-value in a sentence.
g) what is the 99% confidence interval of the effect of being a democracy on gdp for a country that is not landlocked?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 04:30

How does your household gain from specialization and comparative advantage? (what is produced, what is not produced yet paid to a specialist to produce? )

Answers: 3

Answer

Business, 22.06.2019 11:30

Which of the following is not an example of one of the four mail advantages of prices on a free market economy

Answers: 1

Answer

Business, 22.06.2019 15:30

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times

Answers: 2

Answer

Business, 23.06.2019 00:00

Which of the following statements is not correct? the stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the sec. when stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an ipo," and the market for such stock is called the new issue or ipo market. "going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. if you wanted to know what rate of return stocks have provided in the past, you could examine data on the dow jones industrial index, the s& p 500 index, or the nasdaq index.

Answers: 1

Answer

You know the right answer?

Macro economists are interested in why countries have different gross domestic products (gdp). the f...

Questions