1. Explain the concept of VAR and VEC model and how they differ? 2.Using the Figure below, answer these following questi

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1. Explain the concept of VAR and VEC model and how they
differ?
2.Using the Figure below, answer these following
questions:

1 Explain The Concept Of Var And Vec Model And How They Differ 2 Using The Figure Below Answer These Following Questi 1 (294.31 KiB) Viewed 67 times

a. Fill in the following blank spaces that appear in this table. i. The -statistic for b. ii. The standard error for bz. iii. The estimate by. b. Interpret each of the estimates by, by, and be Consider the following model that relates the percentage of a household's budget spent on alcohol WALC to total expenditure TOTEXP. age of the household head AGE, and the number of children in the household NK. WALC = B. + B, In(TOTEXP) + B.NK + BAGE+e This model was estimated using 1200 observations from London. An incomplete version of this output is provided in Table 5.6. Std. Error 2.2019 -Statistic TABLE 5.6 Output for Exercise 5.3 Dependent Variable: WALC Included observations: 1200 Variable Coefficient с 1.4515 In(TOTEXP) 2.7648 NK AGE -0.1503 R-squared S.E. of regression Sum squared resid 46221.62 5.7103 -3.9376 -6.4019 0.3695 0.0235 Mean dependent var S.D. dependent var Prob. 0.5099 0.0000 0.0001 0.0000 6.19434 6.39547