1. Table gives the business expenditures for new plant equipment of public utilities Y and the gross national product X, both in billions of dollars, for the United States from 1960 to 1979.
(a) Estimate the Koyck model [i.e., Eq. (8.10)]. (b) What are the values of A^ and a^?
Table Business Expenditures for New Plant Equipment of Public Utilities and the Gross National Product: United States, 1960-1979 (in Billions of Dollars)
|
Year
|
1960
|
1961
|
1962
|
1963
|
1964
|
1965
|
1966
|
1967
|
1968
|
1969
|
|
Y
|
5.2
|
5.0
|
4.9
|
5.0
|
5.5
|
6.3
|
7.4
|
8.7
|
10.2
|
11.6
|
|
X
|
506.0
|
523.3
|
563.8
|
594.7
|
635.7
|
688.1
|
753.0
|
796.3
|
868.5
|
935.5
|
|
Year
|
1970
|
1971
|
1972
|
1973
|
1974
|
1975
|
1976
|
1977
|
1978
|
1979
|
|
Y
|
13.1
|
15.3
|
17.0
|
18.7
|
20.6
|
20.1
|
22.3
|
25.8
|
29.5
|
33.2
|
|
X
|
982.4
|
1063.4
|
1171.1
|
1306.6
|
1412.9
|
1528.8
|
1702.2
|
1899.5
|
2127.6
|
2368.5
|
Source: Economic Report of the President, U.S. Government Printing Office, Washington, DC, 1980, pp. 203, 255.