QUESTION

Text
Image

To study the rate of growth of population in Belize over the period 1970-1992, Mukherjee et al. estimated the following models:   ${ }^{*}$  
Model I:
  $\widehat{\ln (\mathrm{Pop})_{t}}=\quad 4.73+0.024 t$  
  $t=(781.25) \quad(54.71)$  
Model II:   $\quad \widehat{\ln (\text { Pop })_{t}}=\quad 4.77+0.015 t-0.075 D_{t}+0.011\left(D_{t} t\right)$  
  $t=(2477.92) \quad(34.01) \quad(-17.03)$  
where Pop   =   population in millions,   t=   trend variable,   $D_{t}=1$   for observations beginning in 1978 and 0 before 1978 , and   \ln   stands for natural logarithm.
a. In Model I, what is the rate of growth of Belize&qpos;s population over the sample period?
b. Are the population growth rates statistically different pre- and post-1978? How do you know? If they are different, what are the growth rates for 1972-1977 and 1978-1992?


To study the rate of growth of population in Belize over the period 1970-1992, Mukherjee et al. estimated the following models: \[ \begin{array}{l} \text { Model I: } \widehat{\ln (\text { Pop })_{t}}=4.73+0.024 t \\ t=(781.25)(54.71) \\ \text { Model II: } \widehat{\ln (\text { Pop })_{t}}=4.77+0.015 t-0.075 D_{t}+0.011\left(D_{t} t\right) \\ t=(2477.92)(34.01) \quad(-17.03) \quad(25.54) \\ \end{array} \] where Pop $=$ population in millions, $t=$ trend variable, $D_{t}=1$ for observations beginning in 1978 and 0 before 1978, and ln stands for natural logarithm. a. In Model I, what is the rate of growth of Belize's population over the sample period? b. Are the population growth rates statistically different pre- and post-1978? How do you know? If they are different, what are the growth rates for 1972-1977 and 1978-1992?

Public Answer

TSRNJM The First Answerer