MECE-102 English Medium Solved Assignments 2024-25

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MECE-102 English Medium Solved Assignments 2024-25 Available

Section A
1. a) What is simultaneity bias? Explain the conditions required for identification of parameters in a simultaneous equation model.
b) In the following two-equation system check the identification status of both the equations.
𝑌1 =∝1+∝2 𝑌2 + 𝑢1
𝑌2 = 𝛽1 + 𝛽2𝑌1 + 𝛽3𝑍1 + 𝛽4𝑍2 + 𝑢2
2. Distinguish between weak stationarity and strong stationarity. Explain the methods of testing for stationarity in a univariate time series model.
Section B
3. What is the underlying idea behind the probit model? Explain how parameters are estimated in the probit model.
4. What is meant by dynamic model? Explain how the following model can be estimated?
𝑦𝑡 =∝ +𝛽𝑥𝑡 + 𝛾𝑦𝑡−1 + 𝑢𝑡
where |𝛾| < 1 and 𝑢𝑡 = 𝜌 𝑢𝑡−1+ 𝜀𝑡
. In the above model 𝜀𝑡 is the usual stochastic error term with mean zero and variance 𝜎2 and |𝜌| < 1.
5. Explain the central idea behind the multinomial logit model. What the underlying assumptions inn this model?
6. What are the advantages of panel data models? Specify the fixed effects model and explain how it can be estimated.
7. Write short notes on the following:
a) ARCH model
b) Granger-causality