LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

AK 37

M.A. DEGREE EXAMINATION – ECONOMICS

SECOND SEMESTER – APRIL 2008

    EC 2807 – ECONOMETRICS

 

 

 

Date : 29/04/2008            Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

PART – A

 

 Answer any FIVE questions in about 75 words each.                  (5 x 4 = 20 marks)

1. Define econometrics.
2. What is a non linear transformation?
3. Distinguish between extreme and less extreme multicollinearity.
4. What is homoscedasticity/
5. What are the sources of dummy variable?
6. Differentiate between pure and mixed models.
7. What is an instrumental variable?

PART – B

 

 Answer any FOUR questions in about 250 words each.              (4 x 10 = 40 marks)

8. Derive the normal equations of a two variable linear model.
9. Explain the role dummy variable in seasonal adjustment.
10. Prove that inclusion of irrelevant variables posses a less serious problem than exclusion of relevant variables in the model.
11. Derive Koyck’s transformation used in estimating a distributed lag model.
12. Discuss the method of estimation using grouped data.
13. Derive GLS method of estimation.
14. Show that errors in the measurement of dependent variables poses a less serious problem than that in the independent variables.

PART – C

 

Answer any TWO questions in about 900 words each.     (2 x 20 = 40 marks)

15. Discuss the identifiably state of the following model

‘Y’ s are endogenous and ‘X’ s are exogenous and ‘U’s are error terms.

16. Define autocorrelation and discuss its consequences and remedial measures.
17. Derive 2SLS estimator.
18. Derive 3SLS estimator.

 

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