Question
In their study of the demand for international reserves ( i . e . , foreign reserve currency such as the dollar or International Monetary
In their study of the demand for international reserves ie foreign reserve currency such as the dollar or International Monetary Fund IMF drawing rights Mohsen Bahamioskooee and Margaret Malixi obtained the following regression results for a sample of less developed countries LDC:
where the level of nominal reserves in US dollars
US implicit price defiator for GNP
the nominal GNP in US dollars
ofII the variability measure of balance of payments
the variability measure of exchange rates
Nofes: The figures in parentheses are ratios. This regression was based on guarterly data from to quarters for each of the countries, giving a total sample size of
a A priori, what are the expected signs of the various coefficientsfi Are the results in accord with these expectationsfi
b What is the interpretation of the various partial slope coefficient?
c test the statistical Significance of each Estimated partial regression coefficientthat is the null hypothesis is that Individually each true or cooperation regression coefficient is equal to zero
d how would you test the hypothesis that all parts are sLOpe coefficients simultaneously zero?
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