Question
As an Econometrics student, you have just been hired by the new Zambian government to evaluate the relationship between monetary policy rate and economic growth.
As an Econometrics student, you have just been hired by the new Zambian government to evaluate the relationship between monetary policy rate and economic growth.
(I) Derive the OLS estimator for the intercept and slope to test the relationship between monetary policy rate and economic growth.
(II) What are the properties of these estimators?
(III) What steps will you undertake to obtain empirical evidence of the relationship between monetary policy and economic growth as well as be able to comment on the decision?
Step by Step Solution
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Step: 1
1 Deriving the OLS Estimators To test the relationship between the monetary policy rate X and economic growth Y we can use simple linear regression Th...
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
