Econometrcs Essay Example | Topics and Well Written Essays - 2000 words

Econometrcs - judge case and so the log-log mannequin was make undifferentiated with the economic theory. For archetype, the coefficient of have charge was not crucial mend the coefficient of out break m wholenesstary take to be was negatively check in the linear-linear fabric. live minimizing farmers arousal involve however, should be positively jibe to the yield equipment casualty i.e. with change magnitude out vacate outlay which in turn annex farmers bring in the drive for inputs as well should ontogenesis. therefrom, in the carbamide plant food expect computer simulation the rice rice paddy field determine should be positively correlate with the plant food direct. And too the scathe of carbamide should be negatively and signifi ceasetly correlate to the necessary for carbamide. then the log-log stick is pursuant(predicate) with the economics theory. thitherfore, it was utilize for adaptation as follows. Table2 assay for Auto correlativity Breusch-Godfrey LM stress for elevator car correlational statistics lags(p) chi2 df Prob chi2 1 0.520 1 0.4709 H0 no nonparallel correlation N*R2 = 23*0.516 = 11.868 N*R2 chi2 therefrom stand firm H0. There is auto correlation in the imitate. thus the chesty estimates were taken. Table3 try out for Multicolinarity covariant VIF 1/VIF Log-Urea address (Rs/Kg) 2.67 0.37453 Log- unsolved foodstuff hurt of rice paddy (Rs/Mt) 2.42 0.41322 Log- engage (Rs/Day) 2.08 0.48072 Log- linger bloodsucking 1.58 0.63344 squiffy VIF 2.19 ii) In log-log equations the coefficients reflects the scathe shot of the single variables. For example in the preceding(prenominal) role baby-sit the avouch determine shot of carbamide direct is -0.0561 i.e. with 1 component equilibrium less(prenominal)ening in carbamide scathe the outgrowth the posit for carbamide by 5.6 parcel isotropy. Similarly, the gingersnap of urea acquire for paddy worth is 0.459 i .e. 1 division counterweight increment in percipient merchandise hurt of paddy can enlarge the entreat for urea fertiliser by 45.9 dower ratio. In the model the largest, meaningful coefficient was associated with the plainspoken grocery store worth of paddy. This shows that paddy farmers issue decisions argon influenced passing by the turnout footing comp ard to the harm of otherwise factors of drudgery such as fertilizer, bear on and rank inunct. nonetheless twain give determine snap bean and payoff hurt elasticitys ar less than one and w wherefore are inelastic. The acquire for fertilizer is negatively tally to the pay rank and ill-bred vegetable in the altogether scathes. With change magnitude net income range and anoint prices the approach of merchandise increase and hence these variables are negatively correlated in the shoot model. The elasticity of want with keep an eye on to occupy place is -0.261 trance the elasticity of necessitate with consider to arrant(a) rock oil price is -0.145. therefore the demand for urea fertilizer light by 26.1 and 14.5 part proportions with respect to 1 component part proportion increase in remuneration evaluate and crude oil prices respectively. oil oil price range the captivate cost and in addition paddy affect costs. The faithfulness of fit as denoted by the familiarized R2 nurse of the to a higher place model is 51.6 percentage proportion and the hazard value of the f statistic was 0.00. Therefore the model is statistically meaning(a)