Question
Suppose you decide to try to test the idea that the Pope's 1966 decision allowing Catholics to eat red meat on any day except the
Suppose you decide to try to test the idea that the Pope's 1966 decision allowing Catholics to eat red meat on any day except the Friday of Lent caused a change in the demand function (Fish table) and that you chose the following functional form: F=fPF,PB,lnYd,P, where: F: Per capita consumption of fish, in pounds, in year t PF: Indexed price per pound of fish in year t PB: Indexed price per pound of beef in year t Yd: Real disposable income in year t (in billions of dollars) P: Dummy (1: after the 1996 Pope's decision; 0: otherwise) a) Estimate the demand equation for fish b) Calculate the IVF's of all the coefficients and interpret them (include the operations to calculate each one of them) c) Interpret the results obtained in part b and propose a solution in case you detect any problem
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started