I’m working on a economics exercise and need support to help me learn.QuestionsPlease read this short paper attached below (pages 4 to 8 of this question paper) : Demirden, T., & Pastine, I. (1995). Flexible exchange rates and the J-curve: An alternative approach. Economics Letters, 48(3-4), 373-377 and write a review addressing the following questions.
(1) Brieflfly summarize the topic of the paper. What is the key contribution? (10 marks)
(2) Discuss the data and the econometric methodology used in the example in section 2 of the paper. What is the justifification provided for using the Vector Autoregression (VAR) methodology in the context of the example? Critically discuss the suitability of VAR in comparison to the Engle-Granger cointegration method in this context. Your answer should include suggestion of suitable tests to determine the order of integration of the variables. (30 marks)
(3) The fifinal paragraph of section 2 of the paper states the empirical example as a ‘simple’ one. Assume that the variables in their level forms in this example are all integrated of order one and the trade theory supports one cointegrating relationship here. Discuss an appropriate test of cointegration and suggest how this might help conducting a detailed analysis in this context. Your analysis should present a comparative discussion of VAR and VECM models. (30 marks)
(4) Given the statement “Given the short length and volatile nature of the series, it is not surprising that . . . very few of the coeffificients are statistically signifificant”, how can one determine the suitability of using a conditional heteroscedasticity model in this context? (20 marks)
(5) Suggest a tentative list of estimation tables/fifigures that one would use in the analysis based on your answer in (3) above. To answer this question, you are not supposed to produce any tables or fifigures, a list of hypothetical tables (captions of each table including the description of each of the elements of the table) and a list of fifigures (caption only) will suffifice. (10 marks)
End of Questions 3 of 8 Plagiarism In academic writing, plagiarism is the inclusion of any idea or any language from someone else without giving due credit by citing and referencing that source in your work. This applies if the source is print or electronic, published or unpublished, another student’s work, or any other person.
The University’s Examination Regulations state that ‘Any thesis, dissertation, essay, or other course work must be the student’s own work and must not contain plagiarised material. Any instance of plagiarism in such coursework will be treated as an offence under these regulations.’ (Section 3.1). If work is found to contain plagiarised material, The Examination Regulations give information on the University’s procedures for dealing with cases of plagiarism in postgraduate programmes (Section 4) More information about plagiarism, and how to avoid it is available from the Library website. Referencing If you reference papers in your answers, you should reference them using a consistent referencing system, such as the Harvard referencing system; you should normally cite sources in the text. As a general rule, you should avoid using footnotes to reference. If you include a quote, it should be in quotation marks, and a page number included in the
in-text reference. Whilst you should normally avoid larger quotes, if you include them, you should also
indent the text. If you cite a paper in your essay, you should also include a full reference to the paper in the reference list at the end of the paper. Do not list papers in your reference list that you have not referenced in the pap
Requirements: 1111111
