Test of Hypothesis Confidence Interval for R-Coefficient

Test of Hypothesis Confidence Interval for R-Coefficient Significance Estimations 1-    Ho: β2                       =          8                      df=8 H1: β2                       ≠          6 2-                                     =          0.05 3-    Tc                             =          β2– β2/SE(β2) ____ β2 (with cap) – β2 (simple) / SE(β2 (with cap) 4-    … Read more

Effective Rate of Protection Defined by Equation

Effective rate of Protection

Effective Rate of Protection Defined by Equation Case No. 3 Aij = it is the share of imported input in the total value of imported commodity in the absence of tariff. Before tariff PJ=1000 Before tariff Pi=500/500V Tj=40% PJ=1400      =          1000+400 Ti=20% Pi=600         =          500+100 V’=1400-600=800 %up in V = 800-500 = 300/500(100)         = 60% … Read more

Commercial Policy Define Instruments consumer-producer

commercial policy

Commercial Policy Define Instruments consumer-producer: A definition of such policy which is designed to affect a countries trade relations with the rest of the world country is known as a commercial policy. Instruments of Commercial Policy Tariff – Definition Types Effect of tariff (partial analysis) price effect, consumption effect, the volume of trade effect balance … Read more

Monopoly and Monopsony Power of Trade Effects of Tariff

Monopoly and Monopsony Power of Trade Effects

Monopoly and Monopsony Power of Trade Effects of Tariff General approach small countries (Price Taker Country) Monopoly and Monopsony Power Large countries (Price Maker Countries) Monopoly Power The small country has a very small share in the total supply of the particular commodity in the international market. So she is not in the position to … Read more

Role of Foreign Trade Importance LDCs Benefits

Role of Foreign Trade

The role of foreign trade in economic development is considerable. The classical and neo-classical economists attached so much importance to international trade in a country’s development they regarded it as an engine of growth. Importance of Foreign Trade Foreign trade possesses greats importance of LDCs. It provides the urge that develops knowledge and experience, that … Read more

Rostow’s Five Stages of Economic Growth and Development Model

Rostow’s Five Stages of Economic Growth and Development Model defined in 1960 which as under. The Traditional Society Rostow’s defined the stages of economic growth model traditional society as one whose structure is developed within limited and technology and as pre-Newtonian attitudes towards the physical world. This does not mean that there was little economic … Read more

Classical Linear Regression Model

Classical Linear Regression Model

Classical Linear Regression Model we described Assumption No.1 The regression model is linear in the parameters, as shown in sample/example. Yi=β1 + β2xi+ui                      LRM                (Linear Regression Model) Yi= β1 + β22xi+ui                   NLRM             (Non-Linear Regression Model) Yi= β1 + β2xi2+ui                   LRM                (Linear Regression Model) Assumption No.2 The x value is fixed in repeated … Read more

OLS Formulation Proving with equations

OLS Formulation Proving with equations

OLS Formulation Proving with equations Y – β2X           =          β1 β2           =          ∑xy/∑xi2 β2           =          ∑xiYi/∑Xi2-nX2 β2           =          ∑Xiyi/∑Xi2-nX2 these are also β2 shapes. We can write it in this shape. We prove that why we are write the β2 in this shape ∑ (X-X) (Y-Y)/ ∑(X-X)2 First                            ∑ (x-X) (y-Y)              … Read more

The method of Ordinary Least Squares

The method of Ordinary Least Squares

The method of Ordinary Least Squares explained briefly This method is attributed to Carl Friedrich Gauss. This method has very attractive statistical properties that have made it the most powerful and popular method of regression analysis. To understand this method, we first explain the OLS principle. Two variable PRF Yi=β1+β2Xi+µi PRF is not directly observable. … Read more

Easy Explained Big Push Theory

easy explained big push theory

Easy Explained Big Push Theory: The Big Push associated by professor Paul N. Rosenstein-Rodan. The thesis is that “Big Push” or a large comprehensive program is needed in the form of a high amount of investment and to overcome the obstacles to growth in an underdeveloped economy and to launch it on the path of progress. … Read more

Effects of Population growth on Economic

Describes Effects of Population growth on Economic Development: It was only Mathew and Ricardo who created an alarm about the effects of population growth on the economy. But their fears have proved unfounded because the growth of population in Western Europe has led to its rapid industrialization. Effects of Population growth on Economic Development, Some … Read more

Describes Different Hypothesis Effects

Describes Different Hypothesis Effects. In 1949, Dusenberry presented relative income theory. The starting point of the theory this that consumption and saving do not depend upon the level of current income. Relative Income Hypothesis In other words, spending is related to a family’s relative position in the income distribution of approximately similar families. A person’s … Read more