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Consider the following estimated equation: Ct = 18.5-0.07P, +0.93YDt-0.74D1t - 1.3D2t - 1.3Dst t where: C per-capita pounds of pork consumed in the United

    

Consider the following estimated equation: Ct = 18.5-0.07P, +0.93YDt-0.74D1t - 1.3D2t - 1.3Dst t where: C per-capita pounds of pork consumed in the United States in quarter otherwise otherwise I P= the price of a hundred pounds of pork (in dollars) in quarter t YD = per capita disposable income (in dollars) in quarter t D= dummy equal to 1 in the first quarter (Jan-Mar.) of the year and 0 Da dummy equal to 1 in the second quarter of the year and 0 D = dummy equal to 1 in the third quarter of the year and 0 otherwise (a) What is the meaning of the estimated coefficients of YD, and D (b) Specify expected signs for each of the coefficients and explain your reasoning in 1 line per coefficient. (c) Suppose we changed the definition of Dat so that it was equal to 1 in the fourth quarter and 0 otherwise and re-estimated the equation with all the other variables junchanged. 1. Which of the estimated coefficients would change? 2. Would your answer to part (b) above change? Explain your answer.

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