Business, 14.11.2019 02:31 paulusl19

Consider the following model of trade between the us and other countries, indexed by i:

log importsi = +1.03 × log gdpi − 1.67 × log distancei + .02 × englishi + ui

where imports is imports from i (in hundreds of billions), gdp is the income of country i (in hundreds of billions), distancei is the distance (in hundreds of miles) between the us and country i, and english is a dummy variable for whether the majority spoken language of i is english.

a. interpret the coefficient on log gdp, log distance and english.

b. china is 7200 miles from the us, has a nominal gdp of 12 trillion (120 hundred billion), and does not primary speak english. estimate us imports from china (remember that to go from log(x) to x you need to exponentiate).

c. suppose that one wanted to test if barriers to trade (distance or linguistic) did not matter for trade flows. i. e., one wanted to test if the coefficients on distance and english were both 0. how would one set this up if the error are homoscedastic?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:30

Which of the following statements regarding the learning curve and economies of scale is accurate? answers: just as diseconomies of scale are presumed to exist if a firm gets too large, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.where diseconomies of scale are presumed to exist if a firm gets too large, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.where diseconomies of scale are presumed to exist if a firm gets too small, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.just as diseconomies of scale are presumed to exist if a firm gets too small, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

Answers: 1

Answer

Business, 22.06.2019 11:10

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value

Answers: 2

Answer

Business, 22.06.2019 12:00

Need today! will get brainliest for right answer! compare and contrast absolute advantage and comparative advantage.

Answers: 1

Answer

Business, 23.06.2019 07:00

Ricardo conducts a survey to learn where consumers get information for buying used cars. this is an example of

Answers: 1

Answer

You know the right answer?

Consider the following model of trade between the us and other countries, indexed by i:

...