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Ecomat Exam

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  • Multiple Regression Japanese asset price bubble (1986–1992)

Dependent Variable: INFLATION

Method: Least Squares

Date: 11/09/17   Time: 13:43

Sample: 1981 2016

Included observations: 36

Variable

Coefficient

Std. Error

t-Statistic

Prob.  

C

38.38802

13.95053

2.751724

0.0097

CRISIS

-3.707653

3.681568

-1.007085

0.3214

GDPR

-0.010202

0.005344

-1.909158

0.0652

MS2

0.005148

0.003557

1.447207

0.1576

R-squared

0.268566

    Mean dependent var

8.359497

Adjusted R-squared

0.199995

    S.D. dependent var

8.549961

S.E. of regression

7.647343

    Akaike info criterion

7.011033

Sum squared resid

1871.420

    Schwarz criterion

7.186979

Log likelihood

-122.1986

    Hannan-Quinn criter.

7.072443

F-statistic

3.916567

    Durbin-Watson stat

1.702047

Prob(F-statistic)

0.017268

It is indicated that the following Japanese asset price bubble crisis from 1986-1992 has no significant value except from the constant. We can conclude that the following dummy variable does not significantly affect inflation rate.

Breusch-Godfrey Serial Correlation LM Test:

F-statistic

2.117052

    Prob. F(2,30)

0.1380

Obs*R-squared

4.452511

    Prob. Chi-Square(2)

0.1079


Serial correlation LM test indicated that there are no serial correlation since prob chi-square is more than 5%.

Heteroskedasticity Test: Breusch-Pagan-Godfrey

F-statistic

1.426565

    Prob. F(3,32)

0.2532

Obs*R-squared

4.246700

    Prob. Chi-Square(3)

0.2360

Scaled explained SS

23.82189

    Prob. Chi-Square(3)

0.0000

The following results indicated that there are no heteroscedasticity since the corresponding prob chi square of the obs r squared is more than 5%. Therefore, it’s homoscedastic.

PAM

Dependent Variable: FDI

Method: Least Squares

Date: 11/09/17   Time: 14:13

Sample (adjusted): 1982 2016

Included observations: 35 after adjustments

Variable

Coefficient

Std. Error

t-Statistic

Prob.  

C

1327.489

746.4426

1.778421

0.0851

GDPRGR

-71.36587

79.15186

-0.901632

0.3742

TBILL90

-65.61530

39.44720

-1.663370

0.1063

FDI(-1)

0.885527

0.155083

5.710039

0.0000

R-squared

0.668061

    Mean dependent var

1584.543

Adjusted R-squared

0.635938

    S.D. dependent var

1802.614

S.E. of regression

1087.653

    Akaike info criterion

16.92864

Sum squared resid

36672656

    Schwarz criterion

17.10640

Log likelihood

-292.2512

    Hannan-Quinn criter.

16.99000

F-statistic

20.79692

    Durbin-Watson stat

2.472433

Prob(F-statistic)

0.000000

Fdi(-1) is the only significant variable that affects fdi.

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