LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
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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)
- Define econometrics.
- What is a non linear transformation?
- Distinguish between extreme and less extreme multicollinearity.
- What is homoscedasticity/
- What are the sources of dummy variable?
- Differentiate between pure and mixed models.
- What is an instrumental variable?
PART – B
Answer any FOUR questions in about 250 words each. (4 x 10 = 40 marks)
- Derive the normal equations of a two variable linear model.
- Explain the role dummy variable in seasonal adjustment.
- Prove that inclusion of irrelevant variables posses a less serious problem than exclusion of relevant variables in the model.
- Derive Koyck’s transformation used in estimating a distributed lag model.
- Discuss the method of estimation using grouped data.
- Derive GLS method of estimation.
- 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)
- Discuss the identifiably state of the following model
‘Y’ s are endogenous and ‘X’ s are exogenous and ‘U’s are error terms.
- Define autocorrelation and discuss its consequences and remedial measures.
- Derive 2SLS estimator.
- Derive 3SLS estimator.